How do you manage your finances
during the coronavirus crisis?

The government has taken far-reaching measures in an effort to control the spread of coronavirus in the Netherlands. These measures may have a major impact on your business operations, which will have consequences for your liquidity planning. Adjustments will therefore be required in the near future. But have you also thought about your liquidity strategy in the long-term? This article briefly describes your options in the area of liquidity planning to ensure you can continue doing business (if you so wish) once this crisis is over.

Step 1: make use of the schemes make available to businesses

The government has relaxed the rules for some schemes. You can make use of these schemes to reduce your financial costs or temporarily increase your financial leeway:

• Deferment of payment for tax assessments

Step 2: save on fixed and other costs

It may be that the schemes and possibilities available to you will not make up for your drop in income sufficiently. If this is the case, you can apply to a bank for financing if you face a liquidity shortage.
We will be happy to help you consider other ways you can defer the payment of costs and therefore help finance your business. There are bound to be possibilities when it comes to fixed and other costs. Cast a critical eye over your costs and take the initiative by temporarily cutting costs temporarily and checking with suppliers to see if you can come to an arrangement regarding payments. For example, ask your lessor whether you can obtain a reduction in your rent or defer payment of rent. Investigate whether it is necessary to continue to insure all vehicles, which maintenance and other subscriptions can be suspended, and which investments you can postpone. You can also talk to your suppliers about the possibility of agreeing a payment arrangement for your outstanding invoices.

Step 3: arrange additional finance

The government has relaxed and expanded facilities such as the SME credit guarantee scheme (BMKB), the GO business loan guarantee scheme and the SME credit guarantee scheme for small and medium-sized farms (BL). In addition, more money is being made available to the state-owned microfinance provider, Qredits. As a result, lenders will be able to provide more credit at a faster rate, and businesses will be able to borrow more money more easily. After taking the above steps, you may conclude that additional bridging finance or other financing is necessary. In that case, you can, of course, apply directly to your principal bank.

We are also able to offer you another possibility. We can submit your request for finance to the Loanstreet financing platform on your behalf. When the platform receives an application for financing, this is submitted to several lenders (including major banks). The advantage of this platform is that it can link your accounts directly to your request for finance. A definite answer on whether financing is possible can therefore be provided within a few days.

If you would like to make use of this financing platform, we will be happy to help you and provide assistance in gathering all the data you need in order to submit your application for financing. Complete the contact form below.

Step 4: reorganisation – strategic reorientation

Sometimes financing is not enough, and a reorientation of the business model is required to ensure the business will be able continue operating in future. In this context, we work closely with advisers from Crossminds. They provide direction and support in making strategic choices, even when things are not going so well for your businesses. In addition to helping you make strategic choices, they also provide support with implementation.

We recommend that you keep a close eye on the news in the coming days and weeks. You need to make choices every day to lead your business through this crisis. Our specialists are ready to help you and are keen to share their knowledge with you so you can make the right decisions.

Knowledge dossier on our website

Do you want to know what possibilities are available to you for gearing your business processes to the measures taken so far in connection with coronavirus, or what you can do to help your business stay afloat? We have created a special page on our website, where our coronavirus team of specialists will share their knowledge with you in the coming months. Keep a close eye on that page so that you can make the right choices for your organisation. If you have specific questions about the impact on your organisation, please get in touch with your contact person at Moore DRV or complete the contact form below.