Loans for sole proprietorships with BKR: why the detour is rarely the best route

You run a sole proprietorship and need financing. For inventory, an investment, or to seize a growth opportunity. But then your BKR registration gets in the way. Banks turn you down, and you start looking for alternatives.

Those alternatives do exist. But before you go down that route, there is something important to understand: as a sole trader, your private and business lives are intertwined. As long as your BKR registration remains in place, you will continue to run into the same wall. With every financing application, with every step toward growth.

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Why your BKR registration as a sole trader hits you extra hard

As the owner of a sole proprietorship, you are personally liable for all business debts. This means that there is no legal distinction between you as an individual and your business. This unique situation has important implications for your financing options, especially if you are dealing with a BKR registration.

Since 2007, lenders have been required by law to perform a BKR test on sole proprietorships for loans over 1,000 euros. This also applies to VOFs and partnerships, where personal liability plays a role. This is different for a BV, because there the legal entity is in principle liable, unless there is personal guarantee by directors.

Positive BKR registrations are usually not an obstacle to a loan. On the contrary, they show that you have neatly fulfilled previous credit obligations. It becomes a different story with negative registrations, which often make traditional bank loans impossible.

"Many sole proprietors do not realize that their personal financial history directly affects their business opportunities. This realization often doesn't come until it's too late. That's why I always recommend proactively checking your BKR situation before applying for financing."

Deepak - Legal Specialist

The detours you encounter

If you search for "loan sole proprietorship BKR," you will find all kinds of alternatives. Let's be honest about what you will find there.

Alternative lenders look beyond your credit history. They assess your application based on your current business performance, cash flow, and revenue forecasts. Sounds good, but these parties compensate for their higher risk with higher interest rates. You pay a premium for your BKR history.

Crowdfunding and peer-to-peer lending allow you to present your business plan to potential investors. But this takes time and energy, and there is no guarantee of success. You are dependent on investors finding your story convincing.

Factoring is an option whereby you sell outstanding invoices to a factoring company. They advance the money and take over the collection. This is useful for cash flow, but it is not real financing for investments. And the costs add up.

Guarantors can offer a solution. This is someone with good creditworthiness who acts as a guarantor for your loan. But ask yourself: do you want to put a family member or friend in that position? And do you even have someone who can and is willing to do this?

Government schemes such as the BBMKB (SME Credit Guarantee Scheme) exist, but here too, your BKR registration still plays a role in the assessment.

The problem with detours

All these alternatives have something in common: they circumvent your BKR registration instead of solving the problem.

Suppose you obtain a loan from an alternative lender at 12% interest instead of the 6% you would pay at a bank. For a five-year loan of €50,000, that difference amounts to thousands of euros. Money that you would rather invest in your business.

Or imagine spending months on a crowdfunding campaign that ultimately fails. Time and energy that you could have invested in your business.

And in the meantime? Your BKR registration remains unchanged. The next time you need financing, you will run into the same obstacle. When applying for a mortgage for commercial property. When leasing a company car. When expanding your credit facility.

“I regularly speak to entrepreneurs who have been jumping from one alternative to another for years. More expensive loans, complicated constructions, guarantors from their circle of friends and family. In many cases, they could have had their BKR registration removed. That would have solved the problem in one fell swoop, instead of having to circumvent it over and over again.”
Deepak – Legal specialist

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When can your BKR registration be challenged?

What many entrepreneurs don't know: a BKR registration does not have to remain in place for five years. The Supreme Court has ruled that registrations must be proportionate. The impact on your life, and in your case also on your business, must be reasonably proportionate to the original debt.

You have legal grounds to have your registration removed if:

  • The delay was caused by circumstances beyond one's control, such as illness, dismissal, or divorce.
  • You have now repaid the debt in full.
  • Your current financial situation is stable
  • The registration disproportionately hinders you, for example in your entrepreneurship
  • The registration is factually incorrect or you have not been correctly informed

The latter point is particularly crucial for sole traders. A BKR registration that arose during a completely different phase of your life is now hindering your business growth. This disproportionate impact is precisely what the Santander ruling by the Supreme Court is about.

What BKR removal means for your sole proprietorship

Suppose your BKR registration is removed. What will change?

Access to normal business financing. No more higher interest rates from alternative financiers. Just a business loan from a bank, on normal terms.

No dependence on guarantors. You no longer need to ask anyone to act as a guarantor. You stand on your own two feet.

Room for growth. Whether it's a credit facility, a lease for business assets, or a mortgage for commercial property: the doors are open again.

Peace of mind. No more hassle with alternative routes and creative constructions. Just do business.

Dynamiet Nederland has helped thousands of people have their BKR registration removed. Among them are many entrepreneurs who were then able to grow their businesses as they had envisioned.

Deepak Thakoerdien
  • 14 years of experience in legal proceedings
  • known from AVROTROS Radar
Jan Doeke Biesheuvel
  • Over 8 years of experience in the legal field
  • Has resolved hundreds of cases without court intervention
Lisa van Gulik
  • Has successfully represented hundreds of clients
  • Start lawsuits and proceedings at the Kifid
Nurettin Kocak
  • Has gained great respect within the legal services industry
  • A decisive and no-nonsense lawyer
View our entire team

Frequently asked questions about loans for sole proprietors with BKR

As a self-employed person with a negative BKR rating, can I borrow money?

Why does my personal credit rating affect my business loan?

How much can I borrow with a sole proprietorship?

Can my BKR registration be removed so that I can borrow more easily?

The choice is yours

You can take the long way around. Alternative financiers, crowdfunding, factoring, guarantors. It can work. But you pay more, it takes more effort, and your BKR registration remains in place.

Or you tackle the problem at its root. Find out whether your registration can be removed. If so, you will not only have access to financing now, but also for every future step you want to take with your business.

Would you like to know whether your BKR registration is contestable? Schedule a free consultation today and discover the possibilities for you and your sole proprietorship.

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