Buying ‘credit’ by not paying is tempting, but also risky. It is advisable, therefore, to set up proactive agreements in this respect with your customers and suppliers.

Often the government (National Social Security Office, withholding tax, VAT, personal and corporation tax) will be one of your main creditors. At the Federal Council of Ministers meeting on 6 March 2020, it was decided that, with regard to these obligations to pay contributions and taxes, payment could be staggered, without any fines or increases being applied. In addition, an automatic deferral has already been provided for in respect of tax debts.  

Remember though that the usual interest arrangements will remain in force. They may also be cancelled subject to separate approval from the Management Committee, which you will usually only receive afterwards.

Being an entrepreneur, it may consequently be more beneficial to talk to your bank rather than taking on the government as a lender as interest rates are still low.

If you have other questions regarding the Corona crisis, please visit our special FAQ

Last update: 30/04/2020