Saving Dutch business
In March 2020, it quickly became clear that COVID-19 was not just a flu that would pass quickly. The first lockdown quickly became a reality in the Netherlands. Without being able to oversee the entire playing field, our government took a number of drastic measures to save Dutch business. No one could have foreseen at that time that it would not end with just that one lockdown. Even now, everything is not certain. The measures, such as NOW, tax deferral and Fixed Cost Allowance (TVL), have been extended several times. While at the beginning of the pandemic it seemed that the measures would be short-lived and companies would have to pay them back quickly, it ultimately turned out that Covid-19 was a more persistent problem.
Repayment of government aid
Most support measures have recently ended. The TVL, the NOW and a number of lesser-known schemes all end on October 1, 2021. That is why it is now time to look to the future. If you have received NOW, you may have to pay back part of it because your turnover has declined less than you had expected. And you will also have to repay the deferred taxes at some point. The latter is only required from October next year and may take up to 5 years.
Control your liquidity
Your liquidity position may still be sufficient at this time. Fortunately, the economic prospects in the Netherlands and a large part of Europe are good. This offers great opportunities for you as an entrepreneur. Keep in mind that these growth opportunities are associated with higher purchasing volume and therefore probably also with higher inventories and accounts receivable. In addition, there is a good chance that you will have to make investments for this. This includes production machines, but also things such as automation and rolling stock, or even renovation of your business premises. All this leads to a higher financing requirement. So if you do not want to run into problems in 2022 when the repayments of the corona debts 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 advisors at Xolv Finance are happy to assist you. We are bank independent and have many decades of experience in the financing field. Contact one of our specialists for an introductory meeting without obligation.
