Are you an entrepreneur and considering applying for a business loan despite a negative BKR? Obtaining business financing can be a considerable challenge when you are faced with a negative entry at the Bureau Krediet Registratie (BKR, the Dutch Credit Registration Bureau). For many entrepreneurs, such an entry feels like an insurmountable obstacle to the growth and continuity of their business. However, a negative BKR code does not necessarily spell the end of your business ambitions. There are various legal and financial avenues you can pursue to still obtain the required financing or to challenge the burdensome entry. In this article, we discuss the legal framework around BKR entries, their impact on your business loan, and what steps you can take to restore your financial position.
A business loan with a negative BKR is a form of financing specifically sought by entrepreneurs who have previously faced payment arrears and therefore received a negative code. The BKR in Tiel registers all consumer credits exceeding 250 euros and with a term longer than one month. Although business loans to legal entities are generally not registered with the BKR, loans to natural persons, including sole proprietorships and general partnerships (vennootschap onder firma, VOF), are checked and registered. When you, as a self-employed professional (zzp’er) or partner, apply for a business loan, the lender will always consult your personal BKR overview. If it shows that you have failed to meet payment obligations on time in the past, you will receive a negative code. This makes mainstream banks extremely reluctant to grant you a new business loan, as they view you as a heightened default risk. Even so, there are alternative lenders who, despite a negative BKR entry, are willing to finance your business plans.
How does a BKR entry affect your business loan?
The effect of a BKR entry on your options for a business loan is significant and can seriously slow down your company’s progress. As soon as you submit a credit application, the bank or financing company is legally obliged to assess your creditworthiness. They do so partly by requesting information from the BKR. A positive entry shows that you are properly meeting your financial obligations, which works in your favor and speeds up acceptance. A negative entry, by contrast, is a red warning signal to the lender. Depending on the severity of the code, the lender will assess your application. In most cases, a current negative BKR entry leads to an immediate rejection by the major banks. This is because banks are bound by strict duty-of-care rules (zorgplicht) enshrined in the Wet op het financieel toezicht (Wft, Dutch Financial Supervision Act). They simply may not extend credit if this would result in overextension of the customer. Even if your business is highly profitable, a personal negative BKR entry from the past can continue to haunt you.
Difference between business and personal BKR entries
Many entrepreneurs struggle with how business and personal BKR entries relate to each other and what influence this has on their operations. It is important to know that the BKR was primarily established to protect consumers against overextension. This means that only natural persons are included in the register. If you have a sole proprietorship (eenmanszaak), a civil-law partnership (maatschap) or a general partnership (vennootschap onder firma, VOF), you are jointly and personally liable for your business debts. In these legal forms there is no legal separation between your private assets and your business assets. A business credit taken out for your sole proprietorship can therefore indeed lead to a BKR entry in your personal name. If, however, you manage a private limited company (Besloten Vennootschap, BV) or a public limited company (Naamloze Vennootschap, NV), the legal situation is different. A BV is a legal entity with a separate estate. Business loans entered into by the BV are, as a rule, not registered with the BKR. An exception is the situation in which you, as a directeur-grootaandeelhouder (DGA; managing director/major shareholder), personally guarantee the BV’s business loan.
Financing options despite a negative BKR
If mainstream banks reject your application for a business loan with a negative BKR, you are fortunately not out of options. There are various alternative forms of financing that place less weight on a BKR check and look more at your company’s potential. A commonly used option is factoring. With factoring, you sell your outstanding invoices to a factoring company, which immediately pays you an advance. Because the factoring company takes over the credit risk of your debtors, your own BKR entry is often of subordinate importance. Another possibility is crowdfunding, where you raise money via an online platform from a large group of private investors. Although some platforms do carry out a BKR check, they are generally more flexible in their acceptance policy, especially if you have a strong, convincing business plan.
You can also consider taking out a business loan with specialized alternative financiers or via so-called business angels. Note: interest and terms with alternative financiers are usually considerably stricter than with traditional banks. It is therefore highly advisable to have the contracts carefully reviewed from a legal standpoint.
Legal steps to remove an unjustified BKR entry
If your application for a business loan is rejected due to a negative BKR entry, the first step is to thoroughly verify whether this entry is justified and proportionate. In practice, it regularly occurs that lenders make mistakes when passing information to the BKR, or that an entry becomes disproportionately burdensome for your business interests over time. Under the Algemene Verordening Gegevensbescherming (AVG; GDPR), you have the fundamental right to object to the processing of your personal data. The lender is legally obliged to make a careful balancing of interests between their interest in maintaining the entry and your interest in removal. If you can demonstrate that you are now financially stable and that the entry seriously hinders your business continuity, the entry may be removed early. You can follow an unjustified BKR entry step-by-step plan to proceed in a structured way. If the lender refuses to cooperate with your reasonable request, you can initiate court proceedings.
The role of Kifid in BKR disputes
In addition to going to the competent court, the Klachteninstituut Financiële Dienstverlening (Kifid, Financial Services Complaints Institute) offers a low-threshold and often quicker alternative for resolving disputes about BKR entries. If you disagree with your bank’s refusal to remove a negative BKR entry, you can file an official complaint with Kifid. Kifid is an independent body that mediates and issues binding or non-binding decisions in disputes between consumers and financial service providers. For more information on the exact procedures and conditions, please visit the website of Kifid. A Kifid procedure is generally considerably cheaper and less formal than regular civil court proceedings. Kifid’s Disputes Committee will apply marginal review to the balancing of interests made by the bank. This means they assess whether the bank could reasonably have reached its negative decision, taking into account all the circumstances of the case. It is essential that you substantiate your complaint extremely well with objective evidence of your current financial stability and the acute necessity of the business loan for your company.
Why legal advice is essential in financing problems
Successfully navigating the complex world of business financing, strict acceptance requirements and persistent BKR entries requires specific legal and financial expertise. When, as an ambitious entrepreneur, you are confronted with a categorical refusal of a business loan due to a negative BKR, engaging expert legal advice is not a luxury but an absolute necessity for your company’s survival. A specialized lawyer can objectively analyze your specific situation and realistically assess the feasibility of a removal request.
In addition, a lawyer can professionally support you in the often difficult communication with lenders. In practice, banks and financing companies are more inclined to take a request seriously when it is submitted by a reputable law firm, backed by an ironclad legal substantiation and case law. Moreover, your lawyer can critically review alternative financing contracts to prevent you from agreeing to unreasonably onerous terms that impede your operations. Should it unexpectedly come to legal proceedings, whether in court (see relevant case law at rechtspraak.nl) or before Kifid’s Disputes Committee, your lawyer will ensure a well-thought-out and strong litigation strategy.
Frequently asked questions
Can I take out a business loan for my sole proprietorship with a negative BKR?
Yes, although it is considerably more difficult than with a clean slate, there are alternative lenders that offer loans to sole proprietorships with a negative BKR. However, they often apply higher interest rates and much stricter terms to cover their risk. It is also always wise to investigate whether your BKR entry can be removed early through legal proceedings, which would significantly expand your options.
Does a business loan of my BV affect my personal BKR?
In principle, no. A Besloten Vennootschap (BV) is a separate legal entity, and loans granted to a BV are not registered in the personal BKR register. This changes drastically, however, when you as a director or DGA personally guarantee the BV’s loan. In that specific case, a payment arrears by the BV can indeed lead to a personal negative BKR entry in your name.
How long does a negative BKR entry remain visible to lenders?
A negative BKR entry generally remains visible in the register for five years after the date on which the arrears have been fully cleared (the so‑called recovery date, hersteldatum). In certain exceptional cases, when this five-year period weighs disproportionately on your current business interests and you are now financially sound, you can request early removal through a legal balancing of interests and, if necessary, court action.
Read also
- Negative BKR codes explained – what do they mean?
- Removing a BKR entry after repayment – your rights explained
- BKR codes explained – what do A1, A2, H, SR and RH mean?
Need help?
As an entrepreneur, are you running into a wall when applying for a business loan due to a persistent negative BKR entry? The specialized and experienced lawyers of Arslan & Arslan Advocaten are ready to thoroughly assess your situation and assist you with decisive legal advice. We have years of expertise in challenging unjustified or disproportionate BKR entries and guiding entrepreneurs through complex financing issues. Don’t let an outdated entry stand in the way of your company’s ambitions and growth any longer. Contact us for a free initial consultation and discover today what we can do for your business future.
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