If you experience difficulties as an entrepeneur, this can have consequences for the financial health of your business. In that case, we may decide to handover your credit to the Financial Restructuring & Recovery (FR&R) department.
FR&R is the department that deals with credit that poses an increased risk. In many cases, the borrower is a business that is experiencing a financially difficult period.
It is vital that your business is in a financially healthy situation and has good prospects of continuing as a going concern, as this means that you will be able to fulfil all your financial obligations on time.
There are several reasons why FR&R may become involved with your business. For example, your business might no longer be able to make its repayments or interest payments on time, or you may have exceeded the credit limit of your overdraft, meaning your account is now in excess (overstand). It might also be the case that your business’s financial situation or outlook has become concerning, your business has made a loss, has insufficient equity, or the market has changed.
We assess each client’s situation on a case-by-case basis. We will, of course, inform you why we believe additional attention from FR&R is necessary in your case.
FR&R pays additional attention to your financial situation and the credit you obtained from us.
It also looks at how you can reduce the risk that you will not be able to fulfil your obligations.
FR&R is the department that deals with credit that poses an increased risk. In many cases, the borrower is a business that is experiencing a financially difficult period.
It is vital that your business is in a financially healthy situation and has good prospects of continuing as a going concern, as this means that you will be able to fulfil all your financial obligations on time.
There are several reasons why FR&R may become involved with your business. For example, your business might no longer be able to make its repayments or interest payments on time, or you may have exceeded the credit limit of your overdraft, meaning your account is now in excess (overstand). It might also be the case that your business’s financial situation or outlook has become concerning, your business has made a loss, has insufficient equity, or the market has changed.
We assess each client’s situation on a case-by-case basis. We will, of course, inform you why we believe additional attention from FR&R is necessary in your case.
FR&R pays additional attention to your financial situation and the credit you obtained from us.
It also looks at how you can reduce the risk that you will not be able to fulfil your obligations.
Your contact person at FR&R will invite you for a meeting. This meeting may take place in person or over the phone, or it may take the form of an online video meeting. The following topics will be discussed in any event during the meeting:
It is vital that you provide as much relevant information as possible about these topics. If you have advisers and/or an auditor, they are also welcome to attend the meeting.
Following this meeting, your contact person at FR&R will send you a report of the meeting that includes a list of the agreements made. Your contact person will ask you to send us certain documents and financial information.
You draw up an action plan in which you state what you intend to do to improve the financial situation of your business. Your adviser or auditor can help you with this. The action plan sets out the improvements you will make and explains how you will make them. It is also essential that you can implement the action plan immediately.
We will assess the plan from our perspective as the lender. It is important that we believe the plan is feasible and can bring about a sufficient improvement in the financial situation of your business. An effective action plan forms the foundation for the supervision process.
If you are unable to draw up an action plan that will bring about a sufficient improvement in the financial situation of your business, this may lead to the early termination of the supervision process and your credit.
Your contact person will discuss with you the further measures we consider necessary to reduce the credit risk. These may be measures to be taken by you at your business or additional agreements that relate to your credit, such as providing additional security or bringing in an external adviser.
You will implement the action plan in consultation with your contact person at FR&R. You will regularly discuss the progress you have made in implementing your action plan, as well as your financial situation, possible solutions and the follow-up steps that are required. You will keep your contact person informed about the progress you have made in implementing your plan and the results you have achieved. During this phase, you will also send us all information that we request. If the circumstances change, you might need to adjust the action plan in consultation with us or amend agreements that had previously been made.
Should you be unable to implement the agreements relating to the action plan, we may end the supervision process and terminate your credit.
There are several possible ways in which the FR&R supervision process can end:
a) Additional attention from FR&R is no longer necessary
If in the opinion of FR&R, the risk associated with your credit has decreased and it is no longer necessary for FR&R to deal with your credit, the FR&R supervision process will end. We will, of course, notify you about this. In this context, FR&R will check that the following apply:
b) We terminate your credit
We may decide to do this if:
In that case, the Recovery team at FR&R, or our external collection partner, will take over responsibility for dealing with your credit and a recovery process will be started.
c) You repay your credit in full
You may also repay your credit in full by, for instance, refinancing it with another lender. Once you have repaid the credit, the FR&R supervision process will also come to an end.
