Navigation path

Financial difficulties - Sweden

Updated 07/2012

Legal requirements

The most important laws on how to handle financial problems are the:

  • Composition Act svenska
  • Company Reconstruction Act svenska
  • Debt Rescheduling Act svenska
  • Credit Reporting Act svenska
  • Debt Recovery Act svenska

Stabilising a business

Importance of liquidity

If your company experiences financial difficulties, the business must be assessed and possibly transformed. Both commercial and public advice is offered in this context.

There are many ways to improve liquidity:

  • continuous invoicing with payment terms of 14 or 10 days;
  • sending payment reminders as soon as an invoice is overdue;
  • increasing the company's cheque credit (while taking care to avoid high credit costs);
  • leasing equipment and property;
  • extending credit from suppliers to 45, 60 or 90 days;
  • input of funds by owners;
  • selling assets;
  • obtaining risk capital.

Record of non-payment

If a company has poor liquidity then it is important to take action quickly so that it does not start falling behind with payments. A company that is behind in payments may be issued a record of non-payment, which can make it difficult to obtain loans or enter contracts with suppliers in the future. The record of non-payment is drawn up by a credit rating agency.

  • Record of non-payment svenska

Debt recovery and the Swedish Enforcement Authority

Companies can hire a debt recovery company to get help with collecting outstanding debt. However, a debt recovery company cannot force anyone to pay.

  • More on debt collection and debt recovery companies svenska

If the debt is not paid, the debt recovery company can refer the matter to the Swedish Enforcement Authority (Kronofogden), which is responsible for collecting debts.

  • What does the Swedish Enforcement Authority do? svenska

Objecting to incorrect claims

With regard to companies – but not sole traders – even an application for a payment injunction is registered as a record of non-payment.

Therefore, it is especially important for companies to object to incorrect claims immediately when a demand for payment of outstanding debt is received, rather than waiting for a payment order from the Swedish Enforcement Authority.

Swedish Data Inspection Board monitors the handling of personal data and can also provide more information on credit ratings.

Company reconstruction

A company with financial problems can be reconstructed instead of being declared bankrupt. A company that is insolvent may reach with its creditors a composition agreement. The company's debts are then written down so that it can continue to exist.

This means not only settlement with its creditors to reduce the debt, but also measures for improving the company's profitability.

The applicable conditions and how reconstruction works in practice are described in the Company Reconstruction Act and the Composition Act

Some commercial bodies specialise in investing in companies which are experiencing insolvency, but which can survive with the aid of investments and restructuring.

  • Company reconstruction svenska

Access to different sources of finance can help overcome financial difficulties.

When filing for bankruptcy is the only option left for a business owner, it pays to cut your losses, initiate proceedings sooner rather than later, and move on to a new project.

Administrative procedures

Order for payment

A company that wishes to object to incorrect claims must ensure that the applicant withdraws his/her application with the credit rating agencies so that the record can be removed.

Such a disclaimer must include a written explanation from the debt collection company to the credit information company that the application for a payment injunction was incorrect.

  • Order for payment svenska

Check also the legislation on this topic in:

  • References

    Legal texts

    • Debt Recovery Act (1974:182) - Inkassolag svenska
    • Company Reconstruction Act (1996:764) - Lag om företagsrekonstruktion svenska
    • Debt Rescheduling Act (1994:334) - Skuldsaneringslag svenska
    • Credit Rating Act (1973:1173) - Kreditupplysningslag svenska
    • Composition Act (1970:847) - Ackordslag svenska

Living and moving in Europe

Still need help?

Still need help?

Enterprise Europe Network - Contact points

The Enterprise Europe Network provides businesses with information and advice through its local contact points. 

Choose your nearest contact point for personalized help and advice:

Further help

For business activities run as sole traders or partnerships in which personal liability for the company's debts applies, help with repayment plans and debt restructuring can be found via the Swedish Enforcement Authority.

  • General information on debt restructuring svenska
  • Debt restructuring (brochure with form) svenska

The 'Invest Sweden' Agency provides help and advice free of charge to foreign citizens.

  • Invest: Sweden svenska

Individuals who have moved to Sweden can turn to ALMI and the IFS corporate counseling agency.