How to overcome financial difficulties?

"The agricultural sector is developing rapidly. Growers will have to make choices: do I go for a niche (such as organic) or do I go for large volumes at the lowest possible cost. Especially the latter represents a further intensification of capital. The only thing certain about the future is that it is uncertain." says Harjo Bakker, a Dutch corporate and insolvency lawyer at RWV Advocaten in Leiden.

Bakker is regularly involved with horticultural businesses that, for whatever reason, end up in financial trouble. "The market is challenging in any case. Parties that have many dealings in Russia have had to take some unexpected heavy blows. If something like this should happen: don’t wait too long, consult with consultants as soon as possible,” he advises." Too often we see - and particularly in family businesses – that they go on much too long. Ultimately you’ll find yourself with your back against the wall and another - the bank, a supplier – takes over and you lose control."

He talks about a nursery that did raise the alarm in time that he helped relaunch with other consultants when a bankruptcy appeared inevitable. The grower is optimistic again. "I think we should be happy that we were on time and that we can look confidently towards the future and do a relaunch."

Options

There are several possibilities to overcome financial difficulties, if made in time, according to Bakker. "Debt agreements, refinancing or divesting activities can all expose the leak. However: in all of this cost precedes the benefits. Approach your advisors, such as your accountant, business consultant or lawyer, in time. If timely action is taken with expert help it is often possible to work on a new future."

For more information:

RWV Advocaten
(Harjo) Bakker
h.bakker@rwv.nl
T: +31 (0)71-750 22 11
M: + 31 (0)6-83166283