What financing solutions are there for companies affected by corona?
In the case of entrepreneurs, contracts will be postponed or adjusted while the fixed costs will continue. This can cause cash flow problems. To bridge this period, in addition to the BMKB Guarantee credit, we have developed a number of financing solutions, together with the financiers behind our platform, especially for bridging short-term cash flow problems as a result of the corona epidemic.
Mortgage loan with interest and redemption at the end of the loan
A (second) mortgage on the property for 6 months with the redemption period only starting at the end of that period. This can be used for the following situations:
- The excess value can be used to finance the increase in debtor days (the working capital)
- To finance the fixed costs including the retention of staff
This way, one of our financing partners offers a mortgage that is completely redeemable and can be redeemed without penalty at your convenience. The interest, however, has to be paid monthly.
Financing on the basis of existing inventory
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Refinancing at lower monthly charges and repayments
When refinancing a business loan or business credit, you can change the conditions of a loan. You could get a lower interest rate. For example, if you have had an expensive loan during a period when the business was not doing as well as it should, while things are going better now, so you can get cheaper financing. Or you have had growth money through factoring (often a more expensive business loan) and now you want to go for a different form of financing. We have a special page about refinancing that tells you more about that.
Invoice financing when you already have a current account
This can be used for the following situations:
- Finance of peak moments in the fixed costs such as holiday pay, maintenance costs or other one-off large expenses
- Finance of purchase if you have to pay purchase in advance to your suppliers.
Finance of purchase if you have to pay purchase in advance to your suppliers.
What if there is less work for my staff?
In special situations, you can shorten the staff's working hours. This also applies to the outbreak of the coronavirus, as a result of which personnel can temporarily not be deployed or be deployed less. The company can apply for a reduction in working hours and an unemployment benefit for its personnel if the conditions are met. For more information see the information website of the central government about the reduction of working hours.
What else is the government doing to help companies that get into trouble because of corona?
The government has extended the BMKB Credit Guarantee Scheme. With the BMKB, the government partly guarantees companies that want to take out a loan, but are unable to offer sufficient security to the financier concerned (banks in particular). Companies that are affected by the consequences of the coronavirus and as a result run into liquidity problems can temporarily count on extra favourable conditions under the BMKB. There will be a new temporary measure (valid until 1 April 2021) - which will be used for the broad target group of SMEs - with which the State will offer a higher guarantee share in the BMKB. More about this can be found on the special page on corona and BMKB.
In addition, the government has decided that entrepreneurs can apply for tax deferrals. Entrepreneurs who have run into problems as a result of the coronavirus can obtain a deferral of payment from the Tax and Customs Administration. If you can prove in writing that you are in trouble because of corona, you do not have to pay income tax, corporation tax, turnover tax or wage tax for the time being. Despite these measures, the Cabinet states that the Dutch economy is in good shape and that there are sufficient buffers to absorb the negative consequences of the corona outbreak.
Map my financing options