As of this writing, just about all coronagraphs have been scrapped. The world is going back to the 'old normal'. After a winter in which many shops were again closed, everything is now open again. Meanwhile, more than 70% of the adult Dutch have had a booster so it is expected that there will not be another lockdown this year.
End of NOW scheme
The Dutch government has scaled down most business support measures. Thus, the NOW scheme, which is important for many SMEs, will end on 31 March next. After this NOW6, the scheme will end so that most entrepreneurs will have to do without financial support again. Indeed, from October 2022, they will also have to repay deferred taxes. For now, there is a 60-month deadline for this, but even then.
Refund NOW
There are legions of companies that did not know what was coming at them at the onset of the corona crisis. For safety reasons, they applied for NOW and deferred taxes for a shorter period. Some of those companies, after a short downturn, were not greatly affected by corona after all, or even benefited from it. Consider companies in the logistics sector, online shops and those selling fitness equipment for home use. Most of these companies have already repaid the NOW overpayment and therefore will not have much trouble repaying the limited tax arrears.
Tax debt by coronasteun
Unfortunately, there are many more companies that did suffer from the corona crisis for 2 years. Think hospitality companies, fitness clubs or builders of shop interiors. They have had to apply for NOW sometimes up to 6 times and accumulated huge tax debt. They face a huge financial challenge. Their equity position has declined sharply, liquidity is limited and now that the market is open again, they have to make large investments in equipment, inventory and new employees. In addition, they will have to start paying off a substantial amount each month on accumulated tax debts. We understand if, as an entrepreneur, you can't see the wood for the trees then.
A business plan offers a solution
We therefore advise our clients to draw up a concise but thorough business plan for the next five years. What do they need to invest in? What are the monthly repayments? What do the increased raw material and energy costs mean for operations? And finally, most importantly, what does all this mean for the company's financing needs?
Xolv helps draw up a business plan
Xolv Finance's advisers will be happy to assist you in drawing up such a plan. Indeed, we specialise in an important part of the solution: financing. With our many decades of experience and knowledge of the market, we are able to attract the best possible financing for you. This allows you to concentrate on what you do best. Running and growing your business.
