Repayment problems with tax debts?
The financial news is full of stories of entrepreneurs struggling to pay off debts accumulated during the corona era. These may include rent debts at retailers who faced lockdowns, repayment obligations at the bank, but especially tax debts. The latter must be repaid in a maximum of 60 months from October 2022. Under normal circumstances, that seems a perfectly reasonable timeframe. Were it not for the fact that we were already in economic dire straits at that time. High energy prices, major problems in the supply chain of raw materials and resulting high prices. This also led to reduced demand in industries. After the Manufacturing Purchasing Managers Index (PMI) experienced a brief upturn between April and August 2021 with a peak of 63, it then fell precipitously to its low of 43 a year later. A score below 50 means an expected decline in manufacturing demand.
Bank guarantee has long since ceased to be the only option
Working capital is the money your business needs to meet day-to-day financial obligations. For example, to pay suppliers, purchase goods and parts necessary for the business or project. Companies that manufacture capital goods (think machinery) and, for example, construction companies often need to provide financial guarantees as security that they can meet their obligations, take on a project and when they receive advance payments. In the current market, we also see prepayment guarantees being required when goods are ordered abroad (think China or Vietnam, for example).
Credit limit rejected? A guarantee from the parent company can give the right push!
Suppose the credit insurer cannot provide cover on the debtor you are doing business with. Then it may pay to seek a guarantee from the parent company and have the limit reassessed. Credit insurers can then - by guaranteeing the parent for any losses - issue a (higher) limit on the debtor.
Delivering on credit? Do it smart!
Every entrepreneur has to take risks, especially in the beginning. But as the business grows, the risks become greater and also often less transparent. Good entrepreneurs know how to manage risks well. But unfortunately, they do not always succeed. Being an entrepreneur also means being able to deal with setbacks, learn from them and carry on. Falling down and getting up again. And it is essential to learn from mistakes.
Don't just sign at the cross
It's all about the click. But there is more, of course. The click has to be good, but without expertise, you won't get anywhere either. And we haven't even mentioned unburdening customers. But often it starts with the click. Even if you decide to switch jobs. If you give up something for something new, it has to feel right. Emine can only endorse that.
Entrepreneurship is about taking risks
As an entrepreneur, you have to take risks. But calculated, of course. Where you limit risks as much as possible. Ultimately, it should not jeopardise the continuity of your business. Yet irresponsible risks are still taken within companies, which in some cases even end in bankruptcy. It is therefore important to periodically identify risks and take measures to mitigate them. Every company should therefore spend time on risk management!
Factoring: am I losing control?
An entrepreneur starts for himself or herself because he or she believes he or she can do some things better or smarter. Taking matters into their own hands. This includes an entrepreneur wanting to maintain as much control as possible. As a business grows, this often no longer works. Some tasks have to be delegated and external parties also have their say. Initially, when doing business with small customers, you can still set the terms yourself. As the customers grow, you will increasingly have to settle for the (purchasing) conditions of the customer, often a multinational.
Risk management and default risk
Debtor risk is often one of the largest items on the balance sheet whose value needs to be correctly assessed. You know that entrepreneurship involves the necessary risks. It is therefore wise to identify and manage these risks as well as possible. You do this with your risk management: a process by which you continuously identify, control, monitor and report risks.
What trade-offs do you make? Risk management or risk accounting?
If you think about risks at an early stage, you are more likely to prevent them. You can set this up in different ways. For example, risk management is a continuous process, the initiative often lies with management and it is then applied throughout the organisation. Potential events that could have an impact are identified, risks are managed and thus fall within the risk acceptance level. It is thus a structured way to better manage risks. With risk accountability, the emphasis is on, as the name suggests, accountability. It is then more obvious that the audit department, finance department and controllers are the drivers of the process, with support from an external auditor.
Surprising result of Dutch elections
While it was to be expected that the elections would bring quite a few changes, many had not thought that the PVV would become the largest party. Pieter Omzigt's newcomer NSC also gained a hefty number of seats. The old ruling parties were all punished considerably by voters.