About apparent profits, hidden costs and financial stress despite full order books
You work hard, your schedule is full, your turnover is growing — and yet: every month it is exciting whether you can pay all the bills. The outside world thinks that things are going well, but you know better. Debts are mounting, the tax authorities are knocking, suppliers are calling for overdue payments.
How can it be that a company that seems to be running well, still have financial problems? And more importantly: what can you do about it? In this blog we explain how this occurs, why it happens more often than you think, and what solutions there are.
When profit doesn't equal money in the bank
Many entrepreneurs measure success by turnover. But profit on paper does not automatically mean healthy cash flow. And cash flow — not profit — is what determines whether you can pay your bills.
Common causes of debt in a 'profitable' business:
- Late paying customers: your profit is in your accounts, but the money is not yet in your account.
- High fixed costs: such as rent, salaries or lease contracts that continue, even during temporary dips.
- Incorrect pricing: you generate turnover, but your margin is too low or you do not charge for your own hours.
- No VAT reservation: at the end of the quarter, the tax bill comes as a shock.
- Overinvestment: you are growing too fast and investing too much money in inventory, equipment or personnel.
- Private withdrawals or debts: taking money out of your company to cover private deficits — or vice versa.
Result: the creeping build-up of debt
These situations cause you to slip into the red without noticing. You pay your suppliers later, postpone VAT payments or take out a loan to plug holes. In the meantime, your company is running on paper still good. But you feel the pressure.
And that double feeling — radiating success outwardly, while feeling overwhelmed inside — causes stress, shame and fatigue.
When is it time to seek help?
If you notice that you are structurally short of money, it is time to intervene. Look for these signals:
- You postpone payments in order to meet other obligations
- You borrow money (business or private) to pay off debts
- You don't know exactly what your cash flow is per month
- The tax authorities or bailiffs have already reported
- You feel powerless or stressed by your financial situation
No matter how successful your business seems, financial worries won't just go away. But help is available.
What Zuidweg & Partners can do for you
We help entrepreneurs in exactly these situations:
Companies that are doing well — but where payment problems exist beneath the surface.
What we do:
- We bring you financial situation clearly mapped out (cash flow, debts, obligations)
- We guide you in consultation with creditors, banks and tax authorities
- We help you to review pricing, margin and structure where necessary
- We ensure that you regain an overview — and peace of mind
Whether you need to restructure, want temporary relief or simply want to regain control over your finances: we are there for you.
Let the outside world think what it wants — but take control
There is no shame in this. You are not alone. And you are certainly not too late. As long as you are willing to look at what is really going on, there is always a way forward.
Do you recognize yourself?
Do you recognize yourself in (part of) this situation and do you no longer want to walk around with worries? We are ready to help you. Do not wait until the problems increase and take control of your financial future today. Click on the button 'Apply for debt assistance now' and take the first important step towards peace and security for you and your company.
