Tip 1: close 2020 properly
Entrepreneurs like to look ahead. Especially now that there are high hopes that 2021 will be a better year than 2020, plans for this year are already in their heads. And many entrepreneurs presumably cannot wait to bring all these plans to fruition. But what should not be forgotten is to end 2020 well. Especially in this turbulent period, it is important to end the year quickly financially as well. Instruct your accountant to complete everything quickly (and, of course, properly) and make an appointment with accountant for audit now. Only then will it succeed in having the final 2020 annual report ready soon.
Tip 2: Support measures are finite
At many companies the funding requirement this year will undoubtedly differ (significantly) of previous years' financing needs. Companies facing negative consequences of the corona crisis in 2020 were, in most cases, able to take advantage of opportunities to contain their credit needs. These included NOW schemes, tax and repayment deferrals with the bank and sometimes deferral or temporary rent reduction.
As a result of these schemes, some companies even had lower credit needs despite the crisis. But beware: this is finite though. This year we will hopefully return to (the new) normal, in whatever form that will take. As it stands, tax debt must be repaid with effect from 1 July 2021. If the order intake then also starts to increase because the world around us is slowly returning to normal, this could have a major impact on your credit needs. So be prepared for this and make sure there are no surprises!
Tip 3: map out your liquidity needs
Before you can go to the bank as an entrepreneur, it is important to get the results budget for the next two to three years on paper. The same goes for the resulting liquidity needs. Without this information, the bank will definitely not go ahead and your request for financing is hopeless. Therefore, we advise you to submit here quick start, when these forecasts are not yet available.
Is there indeed a changed credit need in 2021? If so the specialists at Xolv Finance naturally ready to advise you on the best possible financing solutions. And then find them.
