How to Get Free Debt Advice & Help for Your Business

Reviewed by

Christopher Andersen

Reviewed by Christopher Andersen

Chris is an Insolvency Practitioner regulated by the ICAEW since 2014,. He is experienced in contentious insolvency with excellent analytical skills and strong knowledge of both general and technical insolvency matters.

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12th April 2024

If your business is struggling with debt, it’s important to know that assistance is available. Various organisations can provide advice, but it’s crucial to exercise due diligence.

In this article, we aim to offer impartial and actionable advice on managing your business debt. Our goal is to help you navigate your financial challenges effectively without recommending any one-size-fits-all solutions.

Independent Advice

Independent debt advisors can help you assess your financial situation, develop a debt repayment plan, and negotiate with your creditors.

There are a number of independent debt advice organisations that offer free and confidential services to businesses in the UK. Here are a few examples:

Business Debtline

Business Debtline, operated by the Money Advice Trust, is a dedicated debt advice charity for businesses across Great Britain. Offering free and impartial guidance, they assist in navigating debt challenges through both telephone consultations and online resources..

Advice NI

Advice NI is a government-funded charity that provides advice to smaller businesses in Northern Ireland. They offer a range of services, including debt advice, financial advice, and business support.

StepChange

StepChange is an independent debt charity that offers expert advice and free debt management to help tackle debt. It can help businesses of all sizes deal with debt problems.

Your Bank

If you have debt with your bank, they may be able to offer you advice on how to manage it. This advice may include:

• Consolidating your debt: This means combining all of your debts into one loan, which can make it easier to manage your repayments.
• Restructuring your debt: This may involve changing the terms of your loan, such as the interest rate or repayment period.
• Taking a payment break: If you are struggling to make your repayments, your bank may be able to offer you a payment break for a period of time.

It is important to note that your bank may not be able to offer you all of these options, and the advice they give you will depend on your individual circumstances.

To get debt advice from your bank, contact your relationship manager or business banking advisor. They can assess your financial situation and recommend the best options.

HMRC

HMRC is the UK’s tax authority, and if you have debt with HMRC, they may be able to offer you advice on how to manage it. This advice may include:

• Setting up a Time to Pay arrangement: This allows you to spread your tax debt over a longer period of time, making it easier to manage your repayments.
• Negotiating a reduction in your tax bill: If you are unable to afford to repay your tax debt in full, HMRC may be willing to negotiate a reduction.
• Cancelling your tax debt: In some cases, HMRC may be willing to cancel your tax debt altogether.

To get advice on debt from HMRC, contact your local office. They can assess your financial situation and recommend the best options.

Local Councils

Local councils often provide advice on their websites about managing business rates and details of their debt recovery process. They will also provide information to keep businesses up-to-date about business rates relief and exemptions.

Other Local Organisations

Other local organisations that may be able to offer help and support to businesses struggling with debt include:

• Chambers of commerce
• Business improvement districts (BIDs)
• Local growth hubs
• Enterprise agencies
• Community development finance institutions (CDFIs)

To find local help for business debt advice, you can search online or contact your local council or chamber of commerce.

Free Forums

Free forums can be a great way to get help and support from other businesses that have been through similar experiences. There are a number of business chat forums in which you can contact other smaller businesses and post any questions you might have about business debt advice. Here are two examples:

• UK Business Forums: UK Business Forums is a large online community for businesses of all sizes. They have a dedicated forum for business debt advice, where you can post questions and get help from other businesses and experienced advisors.
• Business Advice Forum: The Business Advice Forum is another online community for businesses of all sizes. They also have a dedicated forum for business debt advice, where you can post questions and get help from other businesses and experienced advisors.

When using a free forum for business debt advice, it is important to be aware of the following:

• Not all advice is created equal: Not everyone who posts on a forum is an expert in business debt advice. Be sure to carefully evaluate the advice you receive, and do your own research before making any decisions.
• Be mindful of your privacy: Be careful about sharing too much personal or financial information on a public forum.
• Be respectful: Remember that other businesses are also using the forum to get help. Be respectful of their time and opinions.

Industry Bodies

If you belong to an industry body or professional organisation, they may be able to supply resources and/or guidance for dealing with debt. These organisations often have a wealth of knowledge and experience in their respective industries, and they may be able to offer you tailored advice that is specific to your business and your situation.

Here are some ways to get business debt advice from industry bodies:

• Check their website: Many industry bodies have resources on their websites that can help businesses to deal with debt. These resources may include articles, guides, and templates.
• Contact your membership manager: Your membership manager may be able to provide you with personalised advice and support. They may also be able to connect you with other businesses that have been through similar experiences.
• Attend events: Industry bodies often host events and workshops on a variety of topics, including business debt. Attending these events can be a great way to learn more about business debt and to get advice from experts.

If your industry body does not have any resources or guidance on business debt, you can suggest that they develop some. Many industry bodies are open to feedback from their members, and they may be willing to develop new resources in response to demand.

Business Debt Advice from Company Debt

Our longstanding experience and team of specialists can free advice on the following options

1. Apply for Finance – If it’s an option for you, finance may be the best way to pay creditors off and pay back what you owe over a measured period.
2. Ask HMRC for a Time to Pay Agreement – If the debt is to HMRC, they may be open to a time to pay agreement, which is a monthly payment instalment plan.
3. Company Voluntary Arrangement – A CVA is a formal agreement to repay business creditors which is negotiated by an insolvency practitioner. Creditors must vote to accept the proposed terms.
4. Consider a business rescue or restructuring process such as administration. Going into administration offers a moratorium against creditor action which an administrator temporarily takes over the running of the company
5. Consider Voluntary Liquidation – At a certain point, debts may become intolerable and force you into liquidation. Choose this voluntarily before an angry creditor forces it with a Winding up Petition is the better course of action, retaining more control for company directors.