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My experience is that entrepreneurs and / or private individuals who have considerable debts lose their motivation in almost every way. Debts can themselves, combined with a positive cash flow or income stream, undermine the motivation to generate income, to invest or to make a step in personal or business development. The psychological consequences can even become so bad that there will be overwork and depression.

You have “good” debts and bad debt. 

Good debts can be debts incurred for an in-depth investment, generating a profitable cash flow, or Return On Investment (ROI). But not every in-depth investment with ROI is always favorable, because there are people and companies that come into an investment spiral that they can not stop anymore. They become a slave to their investments.

Another example of good debt is the financing of a building. Provided the interest charges are lower than the rental charges, taking into account an investment premium and it is not charged to the geographical flexibility and liquidity / working capital. Never lend more than 90% of the purchase price of a building unless the purchase price is far below the market value. This concerns real estate for the longer term, so that it is used for their own company and / or as their own home. The objective to speculate with real estate is completely excluded here.

If you have debts, what can you do? What can you do if you have debts? 

First, the current situation must be analyzed and determined where you are now financially. A good and comprehensive overview of the “fixed” and variable costs is essential. So sit here quietly. Fixed costs are costs for which nothing can be done, for example the annual contribution for the Chamber of Commerce (KVK) and the standing rights of the energy company. Variable costs are costs that you can influence and that are not absolutely necessary. These costs can probably be reduced and / or postponed. These variable costs should not be confused with the variable costs in a production company.

If you want to change something you have to DO it differently. 

The debt was caused by certain behavior. To get out of debt you have to learn a different behavior, think differently and do differently.

10 TIPS 


1. Simplify everything both business and private.

Some examples:

  • Do I need SAP ERP or can I also use it in a standard program such as Exact or Afas?
  • Should we still work on company cars or is a travel allowance better?
  • The lease is almost over. Am I going to negotiate the price or am I looking for another, cheaper building?
  • Do I still need a fixed telephone line at home and such a fast internet connection?

    2. Which products or services are for the ‘clean appearance’, which can be simplified and which are completely unnecessary?

    3. Adjust your debtor policy and collect the debtors in time.

    4. Make a real budget for each month and keep it there.

    5. Do not think you are a “social” director if you wait a long time with reorganizing. The continuity of the company can be compromised, with the result that all employees may be left without work.

    6. Do not incur costs for “future” savings. 9 out of 10 times this is different and you want to get out of debt and do not make extra debts.

    7. Throw away your company credit card or comfort card, etc.

    8. Never take out a revolving credit (also known as a dead end credit). If you do, try to refinance it for a lower interest rate with a fixed, real repayment obligation.

    9. No Financial lease (however beautiful and luxurious this sounds), because the interest is usually too high.

    10. Never lend more than 90% of the purchase price of your property unless the purchase price is far below the market value.


    Always pay the tax 

    Do not operate ostrich policy with taxes such as sales tax (VAT, VAT), corporate income tax (VPB), loonheffing (LH) and income tax (IB). The penalties and interest that the tax authorities impose when you as a taxpayer are neglected are enormous and do not weigh up against the few months of postponement of payment.


    Then a few simple things like: 

    • Try to have as few subscriptions as possible. Fixed fees for internet, telephone connections, magazines, maintenance contracts, etc. are a fixed monthly cash flow drain and cost item that can increase considerably. Make the calculation monthly amount * 12 = annual amount. The amounts are then larger and give a better picture. For example, I paid KPN for a basic telephone connection € 22 per month, which is € 264 per year for a connection. After a short Google search, I ended up with Budgetphone and now pay € 10 per year for VOIP, which is an excellent alternative for calling.
    • Take little money with you, you can not spend it either.
    • Stop superfluous luxury as lunches and dinners outside the door, or items that fall under representation costs, such as business gifts.
    • Dismiss your most expensive loan first.
      NOTE: and much more.

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