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If you, as an entrepreneur, are temporarily experiencing cash flow problems, there are several options to provide some breathing room. You can ask your supplier for a deferral or a payment arrangement, and for more serious problems, there are legal avenues such as a private debt settlement agreement (WHOA) or, as a last resort, a suspension of payments.
Request a deferral or a payment arrangement
If you are temporarily unable to make payments — for example, because a major client still needs to pay or due to unexpected costs — please request a deferral or payment arrangement in good time. Preferably do so in writing and with supporting evidence: explain why it is temporary and when you will be able to pay. Good communication increases the likelihood of a favorable response.
Make clear agreements
If you agree on an arrangement, record it in writing: the amount, the installments, and the consequences if you fail to comply. This prevents misunderstandings and maintains a good relationship with your supplier. Subsequently, adhere strictly to the agreements.
For structural problems: the WHOA
If the problems are more serious and structural, the Private Agreement Homologation Act (WHOA) can offer a solution. This allows you to offer your creditors an agreement to restructure your debts, which can be declared binding by the court under certain conditions — even for creditors who vote against it. In this way, you may be able to avoid bankruptcy.
Suspension of payments or bankruptcy as a last resort
If this fails, your options remaining are a suspension of payments (temporary deferral under supervision) or, in the extreme case, bankruptcy. The sooner you intervene and seek advice, the more options you have. So do not wait until it is too late.
Frequently Asked Questions
How do I request a payment deferral?
Preferably in writing and substantiated: explain why it is temporary and when you will be able to pay. Document any arrangement.
What is the WHOA?
The Private Agreement Homologation Act: a route to reach a binding debt agreement with your creditors and thus avoid bankruptcy.
When should I seek advice?
As early as possible. The sooner you intervene, the more options you have to prevent bankruptcy.
Help with payment problems?
Our legal experts advise on payment arrangements and the WHOA. View our financial lawteam, our legal assistance, or schedule a free consultation.
