Employers sound the alarm on the financial situation: hurry with the recovery fund

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Employers are asking the cabinet to speed up the arrival of a recovery fund for companies affected by the coronavirus crisis. More and more entrepreneurs, especially in the catering and events sector, are in financial difficulty due to huge private and tax debts, according to a tour of NU.nl.

“They have accumulated considerable debts in two years, totaling billions. And this is also the case in the art and culture sector and part of the retail trade”, says Hans Biesheuvel, president of the association of entrepreneurs ONL.

Biesheuvel speaks regularly with struggling entrepreneurs. “And on top of that, they haven’t been able to invest in their business for two years. Also, they don’t have to go to a bank with debts on their balance sheets. It’s time these entrepreneurs got help ASAP.” , otherwise they will stop themselves.”

The president refers to figures from the Chamber of Commerce, which show that 12,109 companies went out of business in April. This is 27% more than a year earlier. Actual bankruptcies were few and the number of businesses closing last month was almost a quarter higher than in April last year.

Earlier, INretail, the trade association for the fashion, sports and footwear industry, had already sounded the alarm. Managing director Jan Meerman expects several thousand traders to decide to quit in the coming months due to excessive leverage. “We estimate that 20% of our supporters have serious financial problems. Half of them will stop or go bankrupt.

“6 billion capital evaporated during the corona period”

According to Chairman Robèr Willemsen of Koninklijke Horeca Nederland (KHN), around twenty thousand entrepreneurs currently have negative equity. “During the corona period, 6 billion euros of equity evaporated. In addition, not all entrepreneurs were eligible for the support measures and considerable debts accumulated. This money must be repaid soon and which weighs on these people like a sword of Damocles.”

Willemsen also indicates that the restaurant sector is currently experiencing significant price increases. “That’s on top of that. Higher energy costs, higher personnel costs due to scarcity, and the purchase prices for certain products are sometimes up to 30% higher. The average increase for entrepreneurs is between 10 and 20% and is currently only partially passed on to the consumer.

The House of Representatives will debate the draft plan for a corona stimulus fund on Tuesday. ONL President Biesheuvel thinks this is all taking far too long. “We can’t wait forever. Make sure entrepreneurs can take more time to pay off their debts as soon as possible, offer them as much help as possible.”

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