It is important that you take action as quickly as possible. That way, you prevent others from taking decisions for you. For example, the bank ending your loan when you cannot repay it. Or a supplier engaging a bailiff because you did not pay your bills.
1. Map out your repayments and debts
Make sure your business records are current and up to date.
- For all types of corona support you received, map out whether you have to repay anything and when this money is due.
- Find out when you must start paying off loans and tax debts.
- Make an overview of invoices that you still have to pay (creditors), and which invoices you still have to collect (debtors).
- Make an estimate of turnover and sales for the remainder of the year.
2. Check what you spent the corona support on
You must repay corona support if you received more than you were entitled to. For example, because your turnover was higher, or because your wage costs were lower than expected. Do you not have the money for repayments? Find out what you spent it on. You can then decide on the best solution.
Did you invest the money received in company assets? Then refinancing might be an option for you. This is when you take out a loan for which the term is equal to the period of use of the asset. You can do this through a bank or through an alternative financing source. Refinancing is only possible if you can regain the loan amount during the term of the loan. Adjust your business model as needed.
Collect outstanding invoices
Do you not have the money because your customers are not paying or are paying too late? For example, because they are having problems themselves due to the corona crisis. Read this step-by-step plan to find out what you can do to get your money when your customer does not pay their invoice. For new deliveries, consider requesting a deposit or prepayment. And see whether there are other ways to free up money from your own company.
3. Payment arrangements corona support
If you do not have the money to make repayments on time, see if you can come to payment arrangements with the executors of the arrangements, your creditors.
- You can request a payment arrangement for the TVL (in Dutch) from RVO.
- You can request a payment arrangement for the NOW (in Dutch) from UWV.
- If you have to repay Tozo or TONK, this will go through your municipality.
Keep in mind that if you applied for the special tax payment extension, you must start paying off your accrued tax debt from 1 October 2022.
4. Seek help
- Ondernemersklankbord (OKB, in Dutch): an national network of former entrepreneurs and specialists that help you get insight into your company and business operations. They share their extensive experience and specific professional knowledge on a volunteer basis, only asking you to donate to OKB.
- MKB Doorgaan (in Dutch): a nation-wide organisation that helps viable SMEs and self-employed professionals without staff keep their business healthy. They cooperate with banks, the Tax Administration, accountancy firms, and a network of 160 specialised parties who provide further support. The first appointment is free of charge.
- Your municipality may be able to assist you through financial support, advice or in finding (other) work.
- Your accountant or bookkeeper can also think along with you about what you can do.
5. Check out other options to pay off your debts
Is your accumulated debt too high to repay on your own? You have various options for paying off debts, such as an amicable settlement or debt restructuring. The Debt Flow Chart explains various debt settlements.
Under the Court Approval of a Private Composition (Prevention of Insolvency) Act (WHOA) you can reach an agreement through the court on a debt settlement with part of your creditors. This agreement is then binding for all creditors. This way, you can reorganise your debt and continue your business if it is still viable. To be eligible for the WHOA, you must meet certain conditions.
6. Find information during financial crisis
KVK has several articles available for you, addressing different stages of financial crisis. Find out what steps you can take to continue, adapt, or end your business in the best way possible. Or contact the advisors of the KVK Financing Desk.