A large proportion of your assets is tied up in your company. This can make sense for a while, partly for tax reasons. But there can be negative consequences if the imbalance between business and private assets is too great. That’s why it’s important to clearly separate your assets at an early stage.
Key questions for entrepreneurs
No dividend payments are permitted during the term of the bridging loan. If the COVID-19 loan cannot be repaid within a short period of time, it makes sense to reassess the way your entrepreneurial compensation is structured – usually a mixture of salary and dividends.
Take the opportunity to analyze the existing asset concept or to create a new one.
Potential restrictions on dividend payments or loan repayments can have an impact on private financial planning.
This raises the question of whether private investments such as buying a house or making another major purchase remain possible during this period. Financial uncertainty could also lead to a delay in the sale of a company as part of a planned company succession, or could have a negative short-term impact on company value.
Operational liquidity planning should be coordinated with your private salary planning.
You should also check the ratio of salary to dividends, as this will have an impact on your private tax and pension situation.
For larger salary payments, it makes sense to consider buying into your pension fund to optimize taxes. There are also attractive solutions for adapting and optimizing extra-mandatory occupational pension benefits.
It is never too early to start thinking about separating your business and private assets. With a view to company succession, particularly in uncertain times, this will allow you to ensure at an early stage that your private retirement provision does not depend (only) on the sale of the company and that financial independence from the company is guaranteed.
To increase the salability and financial viability of your company, it is worth making your balance sheet “lighter” by transferring non-operational assets to your private assets. If you are passing on your business within your family, you can increase your room for maneuver thanks to early diversification of your various assets. This will allow you to take several descendants into account in the transfer of assets (e.g., company shareholding to your daughter, other assets to your son, etc.).