Company’s financial difficulties and their prevention

Start arranging debt payments by contacting creditors directly. Prepare a plan with each on how to repay your debts. Remember to assess the amount of debt your company and your finances can afford when negotiating payment plans with creditors.

Contact the sender of the invoice immediately if you do not have money to pay the invoice. Request support for preparing payment plans from Financial counselling for entrepreneurs.

A voluntary debt arrangement is an arrangement loan by which you pay all your company's unsecured debts and unpaid invoices at once. Instead of multiple loans, you will have one bank loan.

You can apply for an arrangement loan e.g. from a bank. You may need a guarantor or security for the arrangement loan. 

You can apply for a debt arrangement for your company if it is unable to pay all debts. Its aim is to restore your company's finances and its functional capacity. Find out if your company can get a debt arrangement before considering restructuring.

Financial counselling for entrepreneurs can give you a preliminary assessment of whether you should apply for a debt arrangement. If you get a positive reply, make an appointment with the financial and debt counselling. Finally, the court decides whether your company is eligible for debt restructuring.

More information on debt arrangements for entrepreneurs

You can apply for a company reorganisation if

• your company is threatened with insolvency, or it is already insolvent
• its financial situation can still be rectified.

In the reorganisation proceedings, a reorganisation programme will be drawn up for your company together with the creditors. The goal is to arrange the payment of your company’s debts and to avoid bankruptcy.

You should apply for reorganisation well in advance, as

• if the bankruptcy application is pending, it is usually too late
• the reorganisation usually lasts for between 5 and 10 years.

Find out more about company reorganisation and its phases

Call the Financial counselling for entrepreneurs when you want to find out about your company's possibility of applying for corporate reorganisation or for information on the costs of reorganisation.