Own fault?!
To get straight to the point: Entrepreneurs with debts, that's clear, aren't they bad entrepreneurs? A comment that is made too often, Not only to me as a debt counselor for entrepreneurs, but also to the entrepreneurs themselves. The best helmsmen are still ashore and judgments are common in most of the Netherlands. I admit that not every entrepreneur turns out to be a top performer and has all the skills required for entrepreneurship. But debts often arise due to unforeseen circumstances, such as the loss of a large client, changing market conditions and also illness and divorce or an argument with a business partner, we see every day in our practice.
And what do you do then? Denial and shame often form the first block to take action and you do not win the lottery every day, so identification, understanding and help from the entrepreneur's environment is very important. As soon as the entrepreneur realizes that bills and / or repayment obligations can no longer be paid within the normal terms and the debts become problematic, the following points of interest are important:
- Provide an overview of the number of creditors and the amount of the debts.
- What are business debts and what are private debts?
- How threatening are the debts?
- Obviously, provide insight into the income and current obligations. Indicate what is really necessary for private and business purposes.
- Do you want/can you continue with your business or is it necessary to stop?
- Predict the repayment capacity.
- Make a repayment schedule.
- Are the debts problematic and cannot be paid off within 3-5 years? Then ask the municipality about debt assistance
- Ensure good and fair communication with creditors.
- Keep agreements made.
Of course, preventing debt is better than cure, but when I look back on 22 years of debt counseling, I see entrepreneurs from all layers of our population, starters and family businesses over 100 years old, unknown and well-known Dutch people and even reaching the Quote 500 is no guarantee to prevent a problematic debt position in the future. In short, it can happen to all of us. So more understanding and especially help to entrepreneurs with debts is very welcome!
jacqueline