How to Get Free Business Debt Advice
If your company is in financial difficulty, professional insolvency advice does not have to cost anything.
Most licensed insolvency practitioners offer a free initial consultation, and several government-funded and charity-backed services provide free business debt advice for UK directors.
We find that cost is the most common reason directors delay seeking advice. They assume the consultation will cost £500 or that engaging an IP commits them to a formal process. Neither is true.
The initial consultation is diagnostic: the practitioner assesses your position, explains your options, and tells you what the realistic outcomes look like. You do not pay for this, and you do not commit to anything.
The cost of not having this conversation is almost always higher than the conversation itself, because every week of delay narrows your options and increases your personal wrongful trading exposure.
Quick Answer: Where to Get Free Business Debt Advice
- Licensed insolvency practitioners (IPs). Most offer a free initial consultation (30 to 60 minutes). Company Debt connects you with regulated IPs. Request a free consultation here.
- Business Debtline. A free charity service run by the Money Advice Trust. Phone 0800 197 6026. Provides advice to self-employed people and small business owners on managing business debts.
- National Debtline. Phone 0808 808 4000. Free advice on personal debt issues, relevant if you have personal guarantees or personal liability from company debts.
- Citizens Advice. Free general advice including basic guidance on business debt, insolvency options, and director responsibilities. Available online and through local bureaux.
- HMRC Business Payment Support Service. Phone 0300 200 3835. Free negotiation of Time to Pay arrangements for tax debts.
Why You Should Seek Free Advice Now, Not Later
We stress the timing because it is the single biggest factor in outcomes. The date you first sought professional advice is one of the most important data points in the liquidator’s conduct report.
A director who sought advice in January and acted in February has a fundamentally different conduct profile from a director who waited until June. Section 214(3) of the Insolvency Act provides a defence to wrongful trading if you took every step a reasonably diligent person would take. Seeking professional advice is the clearest demonstration of that diligence.
We have seen the difference in practice. Directors who called early had more options: informal negotiation, TTP with HMRC, CVA, administration.
Directors who called late had two options: CVL or wait for a creditor to petition. The advice was free in both cases. The outcomes were not.
What Happens in a Free Insolvency Consultation
The consultation is a structured conversation, not a sales pitch. A licensed IP will:
- Ask you to describe the company’s financial position: what you owe, who you owe it to, and what the cash-flow situation looks like.
- Assess whether the company is solvent or insolvent using the statutory tests.
- Explain which options are available: informal negotiation, TTP, CVA, administration, MVL, CVL, or dissolution.
- Give you a realistic view of what each option costs, how long it takes, and what the likely outcome is.
- Assess your personal exposure: guarantees, overdrawn loan accounts, wrongful trading risk.
- Answer your questions honestly.
We emphasise: the practitioner is not there to push you into liquidation. In roughly a third of the consultations we facilitate, the company does not need to be liquidated. It needs a different route, one the director did not know existed until someone explained it. The consultation is the point where you stop guessing and start knowing.
Free Advice vs Paid Advice: What Is the Difference?
The free consultation gives you a diagnosis and a roadmap. If you decide to proceed with a formal insolvency process, that process has costs.
| Process | Typical cost |
|---|---|
| Free initial consultation | £0 (paid by the IP, not by you) |
| Informal negotiation or TTP | £0 (you do it yourself or as part of the engagement) |
| MVL (solvent liquidation) | £3,000 to £5,000, paid from company assets |
| CVL (insolvent liquidation) | From £5,000, paid from company assets |
| CVA (Company Voluntary Arrangement) | £5,000 to £8,000 nominee fee |
| Administration | From £15,000 |
We tell directors: the free consultation tells you which of these you need. Many directors discover they need the £0 option (TTP or informal negotiation) rather than the £5,000 option. Without the consultation, they would not have known.
How to Choose the Right Free Business Debt Advice Service
- Company in financial difficulty, considering formal insolvency. Licensed insolvency practitioner (free consultation). They can advise on all routes including liquidation, CVA, and administration.
- HMRC tax debt specifically. Call HMRC’s Business Payment Support on 0300 200 3835. They negotiate TTP directly.
- General business debt, not sure where to start. Business Debtline (0800 197 6026). They provide free, impartial guidance and can refer you to an IP if needed.
- Personal debt arising from business failure (guarantees, personal liability). National Debtline (0808 808 4000) or Citizens Advice for personal insolvency options (IVA, bankruptcy, DRO).
Company Debt connects directors with licensed insolvency practitioners who offer free, confidential initial consultations. Request your free consultation here. The call takes 30 minutes. The clarity it provides is worth more than months of uncertainty.
FAQs on Free Business Debt Advice
Is insolvency advice really free?
The initial consultation with a licensed IP is free. If you proceed to a formal insolvency process, that process has fees (CVL from £5,000, CVA from £5,000, and so on). The consultation itself, where you find out what you need and what your options are, costs nothing.
Will seeking advice mean my company is liquidated?
No. The consultation is diagnostic, not prescriptive. Many consultations result in recommendations for informal negotiation, TTP with HMRC, or CVA, not liquidation. You decide what to do with the advice. The practitioner does not make the decision for you.
Is the consultation confidential?
Yes. Licensed insolvency practitioners are bound by professional confidentiality. Your creditors, employees, and business partners will not be told you sought advice unless you choose to tell them or a formal process is initiated.
How long does a free consultation last?
Typically 30 to 60 minutes for a first call. That is enough time to understand the company’s position, identify the realistic options, and give the director a practical next step. Complex cases sometimes need a second call once initial financial information has been reviewed.
What documents should I have ready for the call?
The most useful are the latest filed accounts, an up-to-date creditor list (with amounts and ages), the last three months of bank statements, and a note of any personal guarantees you have signed. Even rough numbers are enough for a first call. Precision can come later.
Is Business Debtline only for sole traders, or can limited company directors use it?
Business Debtline supports self-employed people and small business owners, including limited company directors with personal liability for company debt (such as personal guarantees). For company-only insolvency questions, a licensed IP is usually the better starting point because Business Debtline does not advise on formal corporate insolvency.
