Financing for your business in difficult times

Assess your situation

Before you start looking for extra funding, it is important to have a clear understanding of your business’s situation. Extra money will only help if there is a good chance that your business can recover. You should investigate:

• Your business’s financial position. Ensure you have up-to-date business records and current figures. Look at your turnover, costs, outstanding invoices, and available cash flow.
• Whether the problems are temporary or structural. Determine why your business to run into trouble and whether recovery is possible.
• Whether your business has sufficient competitive edge. Take a critical look at your products and services, and carry out market research. What are the unique selling points that set your business apart from competitors?
• Whether your business is still viable. Discuss your situation with your accountant, bookkeeper, or another adviser. They can help determine which recovery measures are possible.

The sooner you gain an understanding of your situation, the greater the chance that you can take action in time.

How can you create financial breathing space?

First, look at the options available within your business. Sometimes you can create extra financial breathing space without borrowing money straight away.

You could, for example:

• reduce costs
• collect outstanding invoices more quickly
• reduce stock levels
• postpone investments
• adjust your product range, prices, or business operations

Do you need extra funding?

Is there not enough financial flexibility within your business? If so, you can explore whether extra funding is possible. Consider, for example, refinancing existing loans, taking out extra credit, a business loan, or other sources of funding.

Which option is best depends on your business’s financial situation and future prospects. Is your business still viable but you need temporary help? If so, you may be eligible for financial support under the Decree on Social Assistance to the Self-Employed (Besluit bijstandverlening zelfstandigen, Bbz). This scheme can support entrepreneurs with a loan or a supplement for a low income. You apply for Bbz through your municipality.

What if the debts are too high?

Are your debts so high that debt restructuring or extra funding no longer seem to be a solution? If so, please go to the page Solving financial problems. See also KVK's Debt Flowchart for an overview of debt arrangements.

Get help

Do you want advice on the financing options available to your business? Please contact the KVK Advice Team on 088 585 11 11. They will work with you to find solutions and refer you to organisations that support entrepreneurs facing difficult times, such as:

• Ondernemersklankbord OKB (Sounding board for entrepreneurs), a national network of experienced ex-business owners and specialists who help you review your business and management with a critical eye.
• Geldfit a national organisation that helps SMEs and zzp’ers whose business is fundamentally viable to improve their financial situation. The first consultation is free of charge.
• Municipalities implement the Financial support for self-employed professionals scheme, Bbz. This scheme can support you via a loan or by supplementing your income to the level of a welfare benefit.
• Your accountant or bookkeeper already knows your company. This makes them a good discussion partner if you want to find out what your options are.