About Going Bankrupt and Starting Over
The Lesson of Credit to the Industry
I myself started a computer business in the past. That business grew. I knew nothing about accounting and that business eventually went bankrupt. It went bankrupt during the second Gulf War. There was no shortage of money, but our inventory situation got out of hand. I knew nothing about accounting, as I said, and at a certain point, the money was simply gone.
I then filed for bankruptcy myself, on the advice of Mr. Bonroi. Mr. Bonroi really saved my life at that moment. Because you start incurring debts just to keep going. But when you’re in the middle of it, you don’t see that you have to stop. I then stopped, filed for bankruptcy. After that, I continued working by setting up a small business, with a few customers that we could take with us. But I really did go bankrupt, with debts.
I also refer to another article about banks and loans. But what I’m getting at is this: during my time in the store, I got to know a number of people, including Mr. Zwedijk. I knew that Mr. Zwedijk wanted to hand over his business. I started talking to him and we came to an agreement. But with my history of a bankrupt business, I naturally had no money.
The Search for Financing
I went to one bank, a second bank, and eventually I ended up at a bank branch of Krediet aan de Nijverheid in Mechelen. The business I wanted to take over was a golden business. Lots of cash, good turnover, everything in order. But I didn’t have a cent.
They received me well in that office. They were going to review the file, requested a lot of information. I often bothered the transferor, Mr. Zwedijk, for figures and documents. A file was started with the idea of obtaining a state guarantee. If you submit a good file, the Belgian state provides extra guarantees via such a guarantee to take over a business.
We prepared everything. The notary drew up the deed and the date of transfer was set. I had arranged to go to the notary in the morning with a bank director – someone I had never met personally. But that morning I received a phone call: he had reviewed the file again and did not agree after all. So the appointment was cancelled.
There I was. The notary was ready, the transferor too, but the takeover was not going through.
The Hard Lessons
From that, I learned a lesson that I will never forget:
As long as something is not signed, nothing has happened. You have to act as if nothing is wrong.
Another lesson:
I then went to another bank, the bank that was the home bank of the company I wanted to take over. They knew the situation, reviewed the file, and I asked my parents if they would sign as guarantors. They did. I was able to take over the business and paid my parents back in full within two years. Everything paid off, all documents in order, my parents were completely free again. And that went fast.
The Power of Trust
What has also stuck with me: the transferor was obviously a bit disappointed that it didn’t go through at first, but he acted correctly. I told him that we would try again, and he continued to work in the business as if it were still his own. He didn’t let himself down, just did his work as always, until I actually took it over.
I took over the business in honor and trust. Everything went openly and transparently, with correct accounting. And he also handled the takeover in a very correct manner.
I learned a lot from that whole affair with the banks, and especially from the way Mr. Zwedijk prepared the takeover.