What to do when closing your business is the best choice
Sometimes closing down your business is the hardest, but also the wisest decision. You’ve given it your all, but the debts keep piling up, the energy is gone, and the situation becomes untenable. Closing your business may feel like failure, but it’s not. It’s an act of responsibility — to yourself, your family, your creditors, and your future. In this blog, you’ll read how to close down your business in a careful manner and make a fresh start with the help of debt counseling.
When is business termination the best choice?
Not every financial setback is a reason to stop. But if your company is structurally making losses and there is no realistic prospect of recovery, then stopping can be the healthiest option. Think of situations like:
- Your debts are higher than you can ever realistically pay off.
- You already have multiple payment arrangements, but you cannot stick to them.
- The demand for your product or service has structurally declined.
- You experience heavy mental or physical strain due to your business situation.
- You've tried everything, but you can't make any progress.
Quitting is not a failure. It is a business and personal choice to make room for something new.
How do you end your business in a responsible manner?
Closing a business is not something you do from one day to the next. It requires preparation, insight and guidance.
Get a clear picture of your financial situation
- Make an overview of your debts, outstanding invoices, loans and taxes.
- Determine which debts can be recovered from you privately (for example in the case of a sole proprietorship).
Decide how to legally stop
- When you do sole proprietorship or general partnership you can deregister with the Chamber of Commerce and you will be personally liable for the debts.
- When you do BV the company itself is liable, but private obligations may arise in the event of mismanagement.
Get advice about this, because the choices have legal and financial consequences.
Inform staff, customers and suppliers
- Be clear and transparent. Indicate when you will stop, what the consequences are and how you will conclude any agreements.
- Try to settle any existing obligations (such as current orders) properly.
Sell or liquidate assets
- Think of your stock, inventory, machinery or a company car. The proceeds can help pay off debts.
- Make sure to arrange a business sale (with invoice) to complete everything correctly.
Get help with debt settlement
- You don't have to do it alone. Debt counselling for entrepreneurs helps you settle outstanding debts and make agreements with creditors.
What happens to your debts after your business closes?
Closing your business does not automatically mean that your debts disappear. The settlement depends on the legal form of your business:
- Sole proprietorship / general partnership: You are personally liable. Creditors can target your private assets.
- BV: In principle, the BV is liable, unless there is improper management.
In both cases, with the help of a debt counselor, you can:
- How to create a amicable settlement meeting with creditors.
- Working towards a debt settlement process (for example via the Natural Persons Debt Restructuring Act – Wsnp).
- Negotiate about partial remission and a feasible payment plan.
What does your future look like after business closure?
The step to stop is hard, but it also gives you space. Space to:
- To regain financial peace of mind.
- To think clearly and make choices again.
- To recover – physically, mentally and professionally.
- Possibly choosing a new path: employment, part-time work, or starting a new business later – with lessons learned from the past.
A good debt counselor will not only help you settle the past, but also help you build a future without financial burdens.
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 escalate and take control of your financial future today. Click on the button 'Request debt assistance now' and take the first, important step towards peace and security for you and your company.
