Can I take out a business loan with BKR registration?

Taking out a business loan with a BKR registration can be quite a challenge. Yet this is not always the case. In fact, it is important to

Are you curious if taking out a business loan with BKR registration is possible in your case? Then read on to find out what this depends on.

Why can taking out a business loan with BKR registration be difficult?

First, let's look at why it is a question at all whether you can take out a business loan with BKR registration.

Here's the thing.

The BKR - Bureau of Credit Registration - keeps a record of loans, credits and debts you take out. Its listing is called a BKR registration. The total of those registrations is your credit report.

This summary is accessible to lenders. It gives a sign of your creditworthiness. Thus, it is an indication to those other lenders whether or not it is responsible to grant you a (new) loan.

Do you have outstanding loans or credit, or have you run into payment delays in the past? If so, this could mean that taking out a business loan with BKR registration is made more difficult as a result

How does removing a BKR registration work?

The type of BKR registration helps determine whether you can take out a business loan

Whether you can take out business loans with a BKR registration in your name depends on the type of registration.

Thus, first of all, we distinguish between a positive or a negative BKR registration.

A debt, loan or credit registered by the BKR is always initially a positive registration. As long as you meet payment obligations nicely, it will remain so.

The moment a payment arrears occurs, it turns into a negative BKR registration. This is identified by a Code A, from arrears notification.

If the backlog is cleared, it is converted to an H, or Recovery Notice.

Taking out a business loan with positive BKR registration

With a positive BKR registration, what matters most is whether the registration is still active. In other words, has the loan or credit already been fully repaid or not?

In fact, when you repay a debt, loan or credit, it does not mean that the BKR registration disappears. It remains for up to five years after repayment. However, it does include a closing date when you repaid the debt.

Thus, for the lender of the business loan you want to take out, this is a sign that the payment obligations you had are closed. If there were no late payments, then there is no reason to see you as an increased financial risk.

If the positive BKR registration is still open, it may well affect the amount you can borrow. After all: the lender will require a monthly repayment.

Therefore, when determining the amount you can borrow, he will take into account your monthly income and payment obligations you have. Repayments you have to make each month on an outstanding BKR record means you will have less left over to repay a new business loan to be taken out.

Taking out a business loan with negative BKR registration

It becomes more difficult when there is a negative BKR registration. After all, this indicates that you have fallen behind on payments (in the past). For a lender, this is a reason to be cautious about extending new credit.

So with a negative BKR registration, it can be quite difficult to take out a business loan.

This is further complicated by the fact that this coding also remains in place for five years, even after the loan to which it related has been closed. In other words, even up to five years after you have repaid your loan or credit, a lender can see that you have fallen behind on payments in the past.

Very annoying of course, when unpleasant circumstances from the past now keep getting in your way. Dynamite Netherlands can help you with this! Every day our experienced BKR lawyers support many people in removing BKR registrations that are holding them back from moving on with their lives.

Wondering what we can do for you? Then don't hesitate to contact us for a free, no-obligation consultation.