Bankruptcy - what now
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By 10 min readLast Updated: 26. June 2023

You're down, but not out. Here's your guide to keeping your customers, even if you have to turn the key.

Bankruptcy, insolvency and closure. There are many concepts to keep track of if the accident happens and you are forced to turn the key and shut down the business.

For most people, this is an unfamiliar and difficult situation - why now? How do you best come out on the other side? Here we guide you through the process with useful knowledge and advice, as well as a guide on how you can continue to keep your customers without having a CVR number and despite the closure.

Shutting down your business step by step:

The first important process, when you have made the decision to stop your company (bankruptcy or not), is to get a handle on the administrative matters in connection with the closure of the company. Depending on the type of business you have, there are different ways to do this.

Most freelancers or small businesses are registered as sole traders or personally owned small businesses (PMV). You can find a more detailed one at the Danish Business Authority guide for the closure of this form of business, but in general there are 5 important points:

  1. Report closure of the business and its registrations:On Virk.dk you can specify the closure of the business and a termination date. After doing this, your company will automatically be deregistered for e.g. tax, VAT, etc. on the termination date.
  2. Completion of the VAT account:After this, you must remember to report and pay VAT up to and including the end date that you indicated on Virk's website. It is slightly different from company to company, how the VAT is calculated, but you can read more about this in Tax guide.
  3. Correct your advance statement at the Tax Office:Once you've mastered the two points above, it's time to fix yours advance statement with the Tax Office, so that in future you will pay the correct amount in tax.
  4. Get control of your tax accounts:No matter what time of the year you close your business, you must get the tax accounts for the year under control. Therefore, you must submit and correct the annual statement via the information form at treasure.
  5. Save your accounts:The last important point is simply that you must remember to save all your invoices and accounts for at least 5 years after the closure of your business.

If, on the other hand, you have another form of business such as ApS or A/S, the process is slightly different depending on your situation. You can read much more about this at The Danish Business Authority.

Keep your customers despite the closure of the CVR number

Once you've got the administrative stuff under control, it's a good idea to reach out to your customers to inform them of the situation. 

If you still have customers left and want to continue the collaboration, it is possible to do this without a CVR number. Here we tell you how and guide you through communication with your customers.

Continue work without CVR no. and company

With a third-party solution such as Factofly you can easily continue work and invoicing without having a CVR number and thus keep your customers and revenue.

When you register with Factofly, we will take care of the administration, where you need neither a CVR number nor a registered company, as the invoicing and all administrative headaches will be taken care of by us.

However, it is important to inform your customers about the change in the best possible way, so that there is a greater chance that the collaboration will continue without problems and that they will be involved in what is going on.

create free user

Keep your customers with Factofly

Factofly lets you service your customers and take payment - even if you have turned the key in your company. Create a free user and send invoices without your own CVR number.

create free user

Give your customers a clear message

When you have to notify your customers, it is important that you communicate clearly and tell them how the change will affect them and the collaboration going forward.

To strengthen the future cooperation, you can keep the message in a positive tone with a clear message to paint an uncomplicated and positive picture of the future.

Copy the text below and use it for your customers:

"Hello _____,

I value our good cooperation and am writing to you to inform you that there will be some administrative changes in my company.

This means that my CVR no. per d. XX/XX – 20XX (insert date) will shut down. Fortunately, this will not affect our good cooperation, as in future I will invoice through a third party for a smarter handling of the administrative matters, thus freeing up time to solve your problems. 

Our collaboration can therefore continue as normal, where the only change for you will be the name and information on the invoice. 

(You will in future receive an invoice from Factofly, and you can see how that invoice looks here.)

I look forward to a long-term/continued collaboration, and if you have any questions, please let me know. Really good day!

With best regards

XXXX”



Communication with customers who react negatively to the changes

It may happen that some customers will react negatively to the changes, have questions or concerns about this. 

Psychologically, for the human brain, changes can mean danger, and we have a natural tendency to cling to the safe and familiar. 

However, there is no reason to panic, and it is important that you first of all show understanding of your customer's new situation and answer all questions as best as possible to create security during the transition.

The fact that a customer reacts negatively to the changes does not necessarily mean that they want to stop the collaboration. 

Keep calm, underline the minimal changes it will have for your customer and create reassurance if necessary. by sending a link to information about your new billing solution. In this way, you help your business partner as best as possible through the new changes. 

And if the accident happens, and the customer still chooses to interrupt the collaboration, fortunately there are a lot of them new customers out there, so you can continue to bring home a turnover.



How to handle the transition from company to your new invoicing solution

Once you have got a handle on the shutdown of your business and informed your customers, it is time to initiate the transition from your own business to your new invoicing solution.

We look into how you, as a user of Factofly, can be guided through a smooth transition, so that you can get started as soon as possible and continue working with your customers. And are you curious about how your salary calculation as self-employed freelancer wants to see, you can take a look at our salary calculator. 

create free user

Keep your customers with Factofly

Factofly lets you service your customers and take payment - even if you have turned the key in your company. Create a free user and send invoices without your own CVR number.

create free user

How to quickly get started with Factofly:

With Factofly, you have the option of invoicing as a private person without your own CVR number. It may be the right solution for you if you have voluntarily or involuntarily closed your business and would like to continue working.

You can sign up for Factofly and create a profile for free. You only pay when you use Factofly, and this is done by charging a fixed service fee, which is automatically deducted from your invoice. You can read more about our prices here.

You can therefore safely register so that you are ready to send the first invoices with your new invoicing solution behind you.

After this, Factofly will take care of all the administrative work, so you can focus on work, where you don't need a CVR number, insurance, accounting programs or a business account.

That is how it works:

Once you've signed up, just follow a few simple steps to send invoices and receive payments.

  1. Create the task and send the invoice

Create the task on the platform and press "Send" to send the invoice directly to your customer.

  1. Sit back and relax

When this is done, Factofly takes care of the rest, so you don't have to deal with all the administrative work.

  1. Receive your money

Factofly collects payment from the customer, calculates both tax and VAT and then pays the money to you as normal salary.

Insurance with Factofly:

When you are a user of Factofly, you are automatically covered by the general statutory provisions insurances; occupational accident and damage insurance.

However, in order to be covered by the insurance during the work, it is important that you create the task on Factofly's platform before you start the work.

Professional liability insurance:

Professional liability insurance covers if you cause damage to a person or other people's property in connection with work.

Professional injury insurance:

Occupational injury insurance is somewhat similar to accident insurance and covers you if you are unlucky enough to be injured during work.

Invoicing with Factofly:

When invoicing with Factofly, invoices you as a company just through Factofly's CVR number.

The details will clearly appear on the invoice, so your customer can always see what work they are being invoiced for.

There is no limit to how much you can invoice for, and you avoid the golden rule that you must create a CVR number if you have a turnover of more than DKK 50,000 per year.

You can invoice both Danish and international customers, and you are automatically updated when there is news about your invoice.

In addition, the money will be paid to you as normal salary, within 48 hours after we have received payment from your customer. 

Deductions with Factofly:

When you use Factofly, you can basically get deduction for all the expenses you have in connection with your work. It can, for example, be expenses for office hotel, tools, transport, software, equipment or anything else that enables you to carry out your tasks.

If you have expenses related to the work that you would like to claim a deduction for, make sure to save the receipt, take a picture of it and upload it under your profile where you can create a deduction.

Who can use Factofly?

As a starting point, everyone in businesses where you sell your time, skills or expertise can use Factofly.

Unfortunately, you cannot use Factofly if you are a stockist and sell physical products such as a webshop or shop.

Factofly and daily allowance

Factofly can easily go hand in hand with daily allowance. So if the turnover is not high enough for you to be self-sufficient, you can easily use Factofly while you receive unemployment benefit and get your turnover up and running again.

Without a CVR number and using Factofly, you will be able to keep your unemployment benefit for 104 weeks, and you will only use your supplementary unemployment benefit in the weeks when you are active and have tasks.

Since you do not have your own CVR number, you will receive an employment contract for your tasks through Factofly, and your hours and income will be automatically reported to Tax, from which your A-kasse can obtain the information.

Factofly is therefore compatible with the vast majority of A-kasses, so you can receive payment for your tasks at the same time as you receive unemployment benefits.

Do you have questions or need more information?

If you have questions or need more information, you are always welcome to contact us at Factofly on 71 96 00 54 or in the chat in the right corner. 

create free user

Keep your customers with Factofly

Factofly lets you service your customers and take payment - even if you have turned the key in your company. Create a free user and send invoices without your own CVR number.

create free user
Bankruptcy - what now
By 10 min readLast Updated: 26. June 2023

You're down, but not out. Here's your guide to keeping your customers, even if you have to turn the key.

Bankruptcy, insolvency and closure. There are many concepts to keep track of if the accident happens and you are forced to turn the key and shut down the business.

For most people, this is an unfamiliar and difficult situation - why now? How do you best come out on the other side? Here we guide you through the process with useful knowledge and advice, as well as a guide on how you can continue to keep your customers without having a CVR number and despite the closure.

Shutting down your business step by step:

The first important process, when you have made the decision to stop your company (bankruptcy or not), is to get a handle on the administrative matters in connection with the closure of the company. Depending on the type of business you have, there are different ways to do this.

Most freelancers or small businesses are registered as sole traders or personally owned small businesses (PMV). You can find a more detailed one at the Danish Business Authority guide for the closure of this form of business, but in general there are 5 important points:

  1. Report closure of the business and its registrations:On Virk.dk you can specify the closure of the business and a termination date. After doing this, your company will automatically be deregistered for e.g. tax, VAT, etc. on the termination date.
  2. Completion of the VAT account:After this, you must remember to report and pay VAT up to and including the end date that you indicated on Virk's website. It is slightly different from company to company, how the VAT is calculated, but you can read more about this in Tax guide.
  3. Correct your advance statement at the Tax Office:Once you've mastered the two points above, it's time to fix yours advance statement with the Tax Office, so that in future you will pay the correct amount in tax.
  4. Get control of your tax accounts:No matter what time of the year you close your business, you must get the tax accounts for the year under control. Therefore, you must submit and correct the annual statement via the information form at treasure.
  5. Save your accounts:The last important point is simply that you must remember to save all your invoices and accounts for at least 5 years after the closure of your business.

If, on the other hand, you have another form of business such as ApS or A/S, the process is slightly different depending on your situation. You can read much more about this at The Danish Business Authority.

Keep your customers despite the closure of the CVR number

Once you've got the administrative stuff under control, it's a good idea to reach out to your customers to inform them of the situation. 

If you still have customers left and want to continue the collaboration, it is possible to do this without a CVR number. Here we tell you how and guide you through communication with your customers.

Continue work without CVR no. and company

With a third-party solution such as Factofly you can easily continue work and invoicing without having a CVR number and thus keep your customers and revenue.

When you register with Factofly, we will take care of the administration, where you need neither a CVR number nor a registered company, as the invoicing and all administrative headaches will be taken care of by us.

However, it is important to inform your customers about the change in the best possible way, so that there is a greater chance that the collaboration will continue without problems and that they will be involved in what is going on.

create free user

Keep your customers with Factofly

Factofly lets you service your customers and take payment - even if you have turned the key in your company. Create a free user and send invoices without your own CVR number.

create free user

Give your customers a clear message

When you have to notify your customers, it is important that you communicate clearly and tell them how the change will affect them and the collaboration going forward.

To strengthen the future cooperation, you can keep the message in a positive tone with a clear message to paint an uncomplicated and positive picture of the future.

Copy the text below and use it for your customers:

"Hello _____,

I value our good cooperation and am writing to you to inform you that there will be some administrative changes in my company.

This means that my CVR no. per d. XX/XX – 20XX (insert date) will shut down. Fortunately, this will not affect our good cooperation, as in future I will invoice through a third party for a smarter handling of the administrative matters, thus freeing up time to solve your problems. 

Our collaboration can therefore continue as normal, where the only change for you will be the name and information on the invoice. 

(You will in future receive an invoice from Factofly, and you can see how that invoice looks here.)

I look forward to a long-term/continued collaboration, and if you have any questions, please let me know. Really good day!

With best regards

XXXX”



Communication with customers who react negatively to the changes

It may happen that some customers will react negatively to the changes, have questions or concerns about this. 

Psychologically, for the human brain, changes can mean danger, and we have a natural tendency to cling to the safe and familiar. 

However, there is no reason to panic, and it is important that you first of all show understanding of your customer's new situation and answer all questions as best as possible to create security during the transition.

The fact that a customer reacts negatively to the changes does not necessarily mean that they want to stop the collaboration. 

Keep calm, underline the minimal changes it will have for your customer and create reassurance if necessary. by sending a link to information about your new billing solution. In this way, you help your business partner as best as possible through the new changes. 

And if the accident happens, and the customer still chooses to interrupt the collaboration, fortunately there are a lot of them new customers out there, so you can continue to bring home a turnover.



How to handle the transition from company to your new invoicing solution

Once you have got a handle on the shutdown of your business and informed your customers, it is time to initiate the transition from your own business to your new invoicing solution.

We look into how you, as a user of Factofly, can be guided through a smooth transition, so that you can get started as soon as possible and continue working with your customers. And are you curious about how your salary calculation as self-employed freelancer wants to see, you can take a look at our salary calculator. 

create free user

Keep your customers with Factofly

Factofly lets you service your customers and take payment - even if you have turned the key in your company. Create a free user and send invoices without your own CVR number.

create free user

How to quickly get started with Factofly:

With Factofly, you have the option of invoicing as a private person without your own CVR number. It may be the right solution for you if you have voluntarily or involuntarily closed your business and would like to continue working.

You can sign up for Factofly and create a profile for free. You only pay when you use Factofly, and this is done by charging a fixed service fee, which is automatically deducted from your invoice. You can read more about our prices here.

You can therefore safely register so that you are ready to send the first invoices with your new invoicing solution behind you.

After this, Factofly will take care of all the administrative work, so you can focus on work, where you don't need a CVR number, insurance, accounting programs or a business account.

That is how it works:

Once you've signed up, just follow a few simple steps to send invoices and receive payments.

  1. Create the task and send the invoice

Create the task on the platform and press "Send" to send the invoice directly to your customer.

  1. Sit back and relax

When this is done, Factofly takes care of the rest, so you don't have to deal with all the administrative work.

  1. Receive your money

Factofly collects payment from the customer, calculates both tax and VAT and then pays the money to you as normal salary.

Insurance with Factofly:

When you are a user of Factofly, you are automatically covered by the general statutory provisions insurances; occupational accident and damage insurance.

However, in order to be covered by the insurance during the work, it is important that you create the task on Factofly's platform before you start the work.

Professional liability insurance:

Professional liability insurance covers if you cause damage to a person or other people's property in connection with work.

Professional injury insurance:

Occupational injury insurance is somewhat similar to accident insurance and covers you if you are unlucky enough to be injured during work.

Invoicing with Factofly:

When invoicing with Factofly, invoices you as a company just through Factofly's CVR number.

The details will clearly appear on the invoice, so your customer can always see what work they are being invoiced for.

There is no limit to how much you can invoice for, and you avoid the golden rule that you must create a CVR number if you have a turnover of more than DKK 50,000 per year.

You can invoice both Danish and international customers, and you are automatically updated when there is news about your invoice.

In addition, the money will be paid to you as normal salary, within 48 hours after we have received payment from your customer. 

Deductions with Factofly:

When you use Factofly, you can basically get deduction for all the expenses you have in connection with your work. It can, for example, be expenses for office hotel, tools, transport, software, equipment or anything else that enables you to carry out your tasks.

If you have expenses related to the work that you would like to claim a deduction for, make sure to save the receipt, take a picture of it and upload it under your profile where you can create a deduction.

Who can use Factofly?

As a starting point, everyone in businesses where you sell your time, skills or expertise can use Factofly.

Unfortunately, you cannot use Factofly if you are a stockist and sell physical products such as a webshop or shop.

Factofly and daily allowance

Factofly can easily go hand in hand with daily allowance. So if the turnover is not high enough for you to be self-sufficient, you can easily use Factofly while you receive unemployment benefit and get your turnover up and running again.

Without a CVR number and using Factofly, you will be able to keep your unemployment benefit for 104 weeks, and you will only use your supplementary unemployment benefit in the weeks when you are active and have tasks.

Since you do not have your own CVR number, you will receive an employment contract for your tasks through Factofly, and your hours and income will be automatically reported to Tax, from which your A-kasse can obtain the information.

Factofly is therefore compatible with the vast majority of A-kasses, so you can receive payment for your tasks at the same time as you receive unemployment benefits.

Do you have questions or need more information?

If you have questions or need more information, you are always welcome to contact us at Factofly on 71 96 00 54 or in the chat in the right corner. 

create free user

Keep your customers with Factofly

Factofly lets you service your customers and take payment - even if you have turned the key in your company. Create a free user and send invoices without your own CVR number.

create free user