Saving or ending your business during the corona crisis
As an entrepreneur during the corona crisis you may well have run into financial difficulties. If your company is struggling financially, it is important that you take action as soon as possible. You may consider ending your business, but first see what you can do to save your business.
Check the corona measures by the Dutch government
The government helps entrepreneurs affected by the corona crisis. For example:
- Businesses affected by the corona measures can apply for corona support measures.
- Self-employed professionals can turn to their municipality and apply for Bbz support.
- Event organisers who have had to cancel events can apply for the Subsidy scheme for events cancelled due to corona measures (TRSEC). Or the ATE scheme.
See which schemes are still available.
Lend money with flexible conditions
The following credit and credit guarantee schemes have been relaxed or expanded:
- Business loan guarantee scheme (GO) for SMEs and large companies
- SME credit guarantee scheme (BMKB) for SMEs
- Credit Guarantee Scheme for Agriculture (BL) for agricultural entrepreneurs
- Microcredit provider Qredits for small business credits
- Small Credits for Corona guarantee measure (KKC) for SMEs
- Export credit insurance for exporters
- Seed Capital Scheme for emerging technology entrepreneurs
Tax and Customs Administration corona measures
The Dutch Tax and Customs Administration took measures to help entrepreneurs with payment difficulties due to the corona crisis and to prevent additional costs. For example:
- A tax payment extension was available until 1 April 2022;
- Decrease of tax collection interest and tax interest rates;
- Repayment arrangements for businesses that have difficulties paying outstanding taxes.
TOA: Time-Out Arrangement
WHOA: avoid bankruptcy
Business is not going well. You have many debts, and you or your creditors are thinking about filing for bankruptcy. There may be something you can do to prevent that. If you and your creditors can reach an agreement for settling your debts, you can make use of the new Court Approval of a Private Composition (Prevention of Insolvency) Act (WHOA). The WHOA allows you to reach a binding agreement with your creditors, ratified by court, that they as well as you must honour. Even if not all your creditors agree. By making use of the WHOA, you may be able to save your business.
Re-launch credit for SMEs
Ending your business: the most important steps
If there are no ways left to save your business, you can choose to end your business.
Keep your administration up-to-date
It is important to keep your administration up-to-date to gain quick and clear insight into your current financial situation. Also provide an report with expected turnover and sales of the coming year.
Here are the 10 most important steps to end your business:
- Inform your customers and suppliers that you are going to end your business.
- Apply for a dismissal permit if you have personnel.
- Check whether you are eligible for discontinuation relief.
- Check whether you are entitled to benefits such as the Financial support for self-employed professionals (Bbz) or Older and Partially Disabled Self-Employed Income Support (IOAZ).
- Deregister from the Dutch Business Register.
- Verify that your VAT ID and VAT tax number have been discontinued.
- Submit a final VAT return.
- Cancel your business insurance and subscriptions.
- Cancel the domain name of your website.
- Keep your business records.
Read more about ending your business.
Apply for debt restructuring
If you can no longer pay your debts, you can request debt restructuring. There are 2 types of debt restructuring:
- an amicable settlement (a voluntary payment scheme)
- the legal procedure Wsnp (the Debt Restructuring for natural persons Act) which follows if an amicable settlement fails.
Filing for bankruptcy
Can you no longer pay off your debts? Then the court may declare you bankrupt. Read how you can file for bankruptcy and more on bankruptcy procedure.
Contact the Netherlands Chamber of Commerce Financing Desk
Would you like advice about your personal situation? Contact the Netherlands Chamber of Commerce Financing Desk and you will be directed to an advisor.