On the silent dangers of growth, cash flow and hidden financial stress

Your business is doing great. Sales are increasing, your customers are satisfied and your agenda is full. And yet… you are checking your bank account on your phone at night. You have to puzzle over how to pay your bills, the tax authorities are waiting for money, and despite all your efforts, your debt is growing instead of shrinking. Does that sound familiar? Then you are not alone. Many entrepreneurs think that they “do not have a debt problem” because their business is profitable. But profit is not cash. And even a successful company can get into financial trouble if there is insufficient control over liquidity and structure. In this blog, we explain how that works — and above all: what you can do about it.

How can you get into debt when your business is 'doing well'?

You are making a turnover, you are even making a profit on paper… but still a deficit arises. How does that happen?

Common Causes:

• Long payment terms from customers
  – You invoice, but the money only comes in after 30, 60 or even 90 days. In the meantime, your costs continue to run.
• Rapid growth without buffer
  – You invest in stock, personnel or expansion, but that involves large amounts of money. If the turnover does not follow immediately, a gap arises.
• No reservation for taxes
  – You forget to put money aside for VAT or income tax. As soon as the assessment comes, the shock is great.
• Private withdrawals or double charges
  – You are taking too much out of the business for private purposes or have private problems that are affecting your business wallet.
• No insight into cash flow
  – You look at the profit and loss account, but not at when money actually comes in or goes out.

The lesson? Success on paper does not automatically mean financial peace. Profit is not the same as cash in hand.

The Dangers of “Invisible Debt”

The biggest risk of this situation is that it goes unnoticed for a long time. You think: “Just hang in there, it will get better soon.” But in the meantime:

• Defer your payments
  – First suppliers, then the rent, finally the tax authorities.
• Are financial agreements under pressure?
  – Such as loans or lease contracts for which you (temporarily) do not have room.
• Is stress increasing?
  – Because you feel that something is not right, but you don't dare to admit it yet.

And then it happens: a VAT assessment, an unpaid invoice, or a defaulter who gives the final push — and suddenly you are up to your neck in financial quagmire.

How do you solve this?

Map your cash flow

Make an overview of:

• Expected income per month
• Fixed costs and variable costs
• Outstanding invoices and payment terms

This doesn't have to be complicated bookkeeping. Even an Excel file or notepad with amounts and dates will give you insight.

Prioritize your payments

Not everything has to be paid at once.

• What needs to be done now? (e.g. personnel costs, rent, insurance)
• What can be done with a postponement? (e.g. suppliers, subscriptions)
• Where can you use negotiation? (e.g. payment arrangements with creditors)

Reserve for tax – always

Automatically secure 30% of your income in a separate account. No discussion. No excuses. No surprises.

Seek professional help with mounting debts

If you notice that postponing payments is becoming structural, that is the moment to seek help. Do not wait until collection agencies or bailiffs force you.
 

How does debt assistance help if your company is healthy (on paper)?

A debt counselor not only looks at your debts, but also at your earning model, cash flow and payment structure. Together we look at:

• How to keep your business viable
• How to Pay Off Debt Without Bankrupting Your Business
• How to make payment arrangements with creditors and the tax authorities
• How to future-proof your financial system — including tax reserves and buffer building

Debt relief is not just for entrepreneurs in crisis. It is precisely the step to prevent worse if your company still has potential now.

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.