Debt arrangements for entrepreneurs? Experts give tips

Your company is not doing as well as you’d wish. Customers place fewer orders, you struggle to pay your invoices on time. You are facing debts, the bank is starting to ask questions and some suppliers will only deliver against cash payment. What options do you have?

Do not miss the signals

It is important to act when you recognise the signs. Take a close look at your business, or let someone do it for you. How viable is your company? Find a solution for the problems you’ve identified and make a plan to turn the tide. If you act quickly, you stand a better chance of overcoming your financial problems.

Find a solution

Market research

When your company hits a (financial) rough patch, finding financing is not always the solution. Ask an external consultant to help you find out what the real problem is. Maybe you will have to market your product or service differently, or to a different target group. Do  market research. The market is constantly changing. Is your product or service in tune with those changes? Use focused campaigns to spark interest for what you have to offer.

Using your company assets

You need money to make a new start with your company or to explore new markets. Try to raise this money from your own assets. One way to do this is by cutting costs wherever possible, so-called bootstrapping.

External financing

Do you need an external money boost? You may be able to re-finance your existing credit. Talk to your bank, or use (a mix of) alternative funding sources, such as crowdfunding, leasing, credit unions, and others. Perhaps you can ask your family and friends to co-fund you. To build trust, it is important, when you want to ask a bank or other third party to invest in you, to have some money yourself.

Decree on Assistance to the Self-Employed (Bbz)

You can apply to your local council to provide a loan under the Decree on Assistance to the Self-Employed (Besluit bijstandverlening zelfstandigen, Bbz). To apply, you’ll have to meet some conditions.

Debt restructuring

If you have too much debt to be able to pay back, even though your company is in essence sound, debt restructuring may be the solution for you and your creditors. Especially if your business is not a legal entity, debt restructuring is often a better solution than bankruptcy.


If you and (a significant part of) your creditors can agree on a financial plan, for instance, repaying a significant part of your debts, or distributing equity among your main creditors, you may be able to avoid bankruptcy by using the WHOA. The WHOA allows you to continue your business, on condition that you adhere to the agreements you have drawn up with your creditors and that have been aaproved by court.

Get help

The advisors of the Netherlands Chamber of Commerce KVK Financing Desk can help you when you find yourself in troubled waters. They can also bring you in contact with other organisations, such as:

  • Ondernemersklankbord (in Dutch): a national network of experienced ex-entrepreneurs and experts. They can help you take a good look at your business and its management. The advisors are volunteers, but they will ask you for a donation to the Ondernemersklankbord Foundation.

If it does go wrong

  • Stay in charge of your company. Take steps as early as possible, and don’t wait for the bank to revoke its credit or a supplier to impound your assets.
  • If you can no longer pay your staff’s wages, you must report insolvency to the Employee Insurance Agency (UWV).
  • Always file your tax returns on time. If you cannot pay your taxes, report your insolvency for taxes and premiums to the Tax Administration. This way, you can prevent receiving an assessment for the estimated tax plus a fine from the Tax Administration.

Unemployed due to closing of your business

If you are 55 years of age or older, and you have become unemployed because your business has ended, you may be able to apply for a benefit to the local council under the Decree on Assistance for the Self-Employed (Besluit bijstandverlening zelfstandigen, Bbz), or the Older and Partially Disabled (Formerly Self-Employed) Persons Income Support Act (Wet inkomensvoorziening oudere en gedeeltelijk arbeidsongeschikte gewezen zelfstandigen, IOAZ). One of the conditions for applying to the IOAZ is that you are still registered in the Business Register, so you must apply before you end your business.