Corona-related financial problems? Help is at hand

Whether you are a large or small business owner, a freelancer or on a permanent contract, the corona virus is bound to have an impact on your financial affairs. The experts at FvB De Boer Financial Advisors have drawn up a list of useful information to help you keep your finances safe.

Mortgage payments
If you might face problems in making your mortgage payments, contact your bank directly. Many banks and other mortgage providers, including Rabobank, ABN Amro and Nationale Nederlanden, are offering their customers three months’ grace on their mortgage payments. In other words, you may be able to skip both interest and lump sum repayments for a three-month period to tide you over.

To apply, contact your bank. You will have to show the bank evidence of why you expect your income to drop. Be sure to check if there are any costs involved. In most cases you will have until December 2021 to catch up on your missed payments.

Personal loans
Here too you can apply for a three-month pause in payments. Most banks have said they are willing to extend the duration of the repayment period. This would mean, for example, that a 60-month loan would run for 63 months. To apply, contact your bank.

Business loans
Contact your bank in plenty of time if you are worried about your company’s ability to make repayments on business loans.

ABN Amro is automatically deferring payments for business loans for a period of six months. If you do not want payments to be deferred, you must contact ABN Amro as soon as you can to inform them.

Government measures
The government has come up with a package of measures to help companies get through the corona crisis.

GuaranteesThe government has introduced the SME Credit Guarantee Scheme, through which it will guarantee 90% of business loans granted by banks for a maximum of two years. If you are the owner of a BV, you will have to guarantee the other 10%.

There are some conditions attached. The maximum loan is €1.5 million and your company should have no more than 250 employees. You must also establish a reasonable expectation that your company will be viable after the crisis is over. The scheme does not cover companies operating in real estate or financial services. For further details, contact your bank.

Support for the self-employed
The government has set up a scheme to top up the income of self-employed people to the amount of the national minimum wage. The temporary bridging measure for the self-employed (Tozo) is in the form of a gift rather than a loan and will be paid out by your local council. Contact your local council to apply.

Noodloket (emergency fund)
Businesses who have lost all or almost of their turnover can apply for a one-off government grant of €4,000 and a further one-off grant of a maximum of €50.000, depending on the size of the business. The money is intended to help companies pay fixed costs such as rent. People and companies based at home are not eligible. Apply to the Netherlands Enterprise Council (RVO).

Discount on microfinance interest payments
The government has also agreed to make €6 million available in microfinance loans for small firms at a temporary interest rate of 2%, with payments deferred for six months. Contact Qredits for more information.

Income and other taxes
Any company affected by corona virus can apply to defer its tax payments for a three-month period. This applies to income tax, corporate tax, tax on salaries and VAT. No interest will be charged on delayed tax payments. Apply at the Belastingdienst.

Emergency measure to prevent immediate job losses
Businesses which have lost at least 20% of their turnover since 1 March can apply for help in paying salaries under the emergency bridging measure (Now). The payments are made on the condition that companies do not fire staff, but re-hire them once the business takes off again.

If you would like to talk about your concerns for your personal or company finances, the team at FvB De Boer Financial Advisors is ready to listen.