Saving Dutch business
In March 2020, it soon became clear that COVID-19 was not just another flu that would soon pass. Consequently, the first lockdown was soon a reality in the Netherlands. Without being able to oversee the whole playing field, our government took some drastic measures to save Dutch business. No one could foresee at the time that it would not stop at the one lockdown. Even now, all is not certain. The measures, such as NOW, tax deferral and Tegemoetkoming Vaste Lasten (TVL), have been extended several times. Where at the beginning of the pandemic it still looked like the measures would be short-lived and companies would have to pay them back quickly, it eventually turned out that Covid-19 was a more intractable problem after all.
Repayment of state aid
Most of the support measures have recently ended. The TVL, the NOW and some lesser-known schemes all end on 1 October 2021. Therefore, now is the time to look to the future. If you have received NOW, you may have to repay part of it because turnover has declined less than you expected beforehand. And you will also have to repay deferred taxes at some point. The latter will only have to be done from October next year and you may take 5 years to do so.
Get a grip on your liquidity
Perhaps your liquidity position is still adequate at the moment. Fortunately, the economic outlook in the Netherlands and much of Europe is good. This offers great opportunities for you as an entrepreneur. Keep in mind that these growth opportunities come with a higher purchasing volume and therefore probably also with higher stocks and debtors. In addition, chances are that you will need to make investments for this. Think of production machinery, but also things like automation and rolling stock, or even refurbishment of your premises. All this leads to a higher financing requirement. So if you do not want to run into trouble in 2022 when corona debt repayments start, we advise you to look at your financing now. Keep in mind that bankers often take months to process your application. If you wait too long, you will be too late.
More information
The advisers at Xolv Finance will be happy to look at it with you. We are bank-independent and have many decades of experience in the finance profession. Contact one of our specialists for a no-obligation introductory meeting.
