More entrepreneurs quickly run into money problems if the banks refuse to provide support. Inretail, the trade association for retailers, warns against this. He says that entrepreneurs are being told ‘no’ more often than last year.
“They are in dire need and knock on their house banker. They often get zero on the case,” says chairman Udo Delfgou in the NOS Radio 1 News. “Or banks make more demands, even when repayments are postponed, while entrepreneurs desperately need it now.”
According to Delfgou, many retailers need money quickly to get their store ready for reopening. “The biggest problem they have in the coming weeks is with extra supplies coming in. They have no money to pay the bills of the suppliers. It has to be fast and not with all kinds of paperwork and rules.”
Loud and annoying
Last year, banks jointly granted businesses a deferment for repayments, but this came to an end in the autumn. “Nobody has an interest in it, not even that entrepreneur, if they get stuck in debt while there is no future perspective,” said Chris Buijink, chairman of the Dutch Banking Association. “That is hard and annoying. I sympathize with those people, but it is the sensible way in which we can continue to help other entrepreneurs as a bank.”
According to the banking association, lending is generally stable. “Our impression is that many entrepreneurs do not apply for credit because they themselves think that extra debt is not the best solution,” says a spokesperson about the situation now. “They know it has to be repaid at some point and lack the prospect of making money.”
Yesterday the government came up with an extra support package for entrepreneurs, but according to Inretail it is important for companies that banks continue to participate. “They are now breaking through a bit. Basically healthy companies must be helped and quickly,” says Udo Delfgou. “Otherwise we will soon have a wave of bankruptcies.”
Special management
In recent months, banks have expanded the departments that entrepreneurs in need can turn to. The so-called Special Management department of ABN Amro and Rabobank employs 20 percent more people than before the crisis. More people have also been hired at ING.
According to the Dutch Banking Association, the crowds are not too bad for the time being. “Banks still see few payment problems with their customers. Of course we know that debts are accumulating below the surface and banks are ready to scale up quickly if necessary.”
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