Business Debt Help
In this guide we’ll explore business debt in greater detail, from what it is, and what causes business debt, to the information and business debt solutions you need to help you keep your business in the black.
Common causes of business debt
There are many reasons you can fall into financial distress as a business owner. The creditors you’re in debt to will continuously demand payment, regardless of your cash flow issues, which is why companies should keep an eye out for the following:
Unpaid invoices from business suppliers
Advance orders for goods or services
Business finance emergencies
Much like life, the market is also unpredictable and everchanging. Changes to market conditions can result in business being tough and your revenue being lower, leaving you struggling to make ends meet unless it picks up.
What do you do when your business is in debt?
Contact your creditors
Whatever your debts, make sure you contact your creditors to see if you can come to an arrangement. Individuals who let their business debt build up without acting on it are more likely to face severe consequences, up to and including court action.
One phone call to your creditor could result in you coming up with a repayment plan, known as a Company Voluntary Arrangement (CVA). A CVA would allow you to settle your debts by paying back a portion of what you owe, putting the worst of your money worries behind you.
Speak to a debt adviser
If you’re creditors aren’t willing to work with you to resolve your debts, it’s time for you to get business debt advice. There are ways you can self-help, like taking advice from one of several UK debt charities, from the Money Advice Trust to the business debtline.
Debt charities are set up to offer free debt advice to anyone with money issues, and some even specialise in business debt advice.
You can verify these charities through their charity number, and they should be able to offer you advice, guidance, and even formal debt solutions, free of charge.
In addition to debt charities, there are debt management companies like Get Help with Debt.
We specialise in debt solutions for both individuals and businesses and have helped hundreds of thousands of people in the UK put their debt problems behind them.
Tips to deal with business debts
Sell non-essential company assets
Reduce your business overheads
Cancel non-essential business subscriptions
Where can I get business debt advice?
Whether you’re a sole trader having trouble with HMRC, or a limited company struggling with priority debt, we will have an insolvency solution for you, helping you get back on track.
Our debt advisers are specialists in all types of debt and can work with you to find the best possible debt solution for you and your business. Together we can find a way to ease your debt concerns and put a plan in place so you can continue trading.
Our friendly team of advisers can start to work through your debt problems as soon as you contact us and are trained to give you the best advice for your situation. Contact us today on 02895 380906.