Significant increase in entrepreneurs with payment problems, says credit bureau

The number of entrepreneurs with payments in arrears increased by 20 percent at the end of last year compared to a year earlier. It concerns entrepreneurs who are registered with Dutch credit bureau BKR with both a form of business credit and consumer credit.

The number of entrepreneurs with both a business loan and consumer credit increased in one year from more than 73,000 to almost 98,000. That equates to an increase of 35 percent, BKR said.

The organization’s board chair, Peter van den Bosch, pointed out that business loans are not regulated in the Netherlands. For example, lenders that only provide business loans do not have the obligation to register those loans.

“Questions then arise, such as, 'How many payment arrears on a consumer credit are repaid by taking out a business credit?’ In this way one gap is closed with the other," Van Den Bosch said.

He stated that BKR has an important role in preventing debt and excessive lending. "But without a complete overview, it remains a blind spot in the field of business credit."