Business debt: help and advice
How businesses in Northern Ireland can get help with financial difficulties.
Many businesses run into financial difficulties but, however big or small the problem, there is plenty of good advice to be found. If you are having trouble paying suppliers there are organisations that can help you.
Government agencies, solicitors, accountants, some charitable organisations and debt counsellors are all able to offer valuable advice on dealing with debt.
This guide explains when and how to seek debt help and where to find guidance on avoiding debt. You will also find information on the various sources of debt advice available to businesses in financial difficulty or facing insolvency.
When and how to seek debt help
First steps in tackling business debt and how to avoid problems when seeking debt advice or help.
It is always very stressful facing financial problems as a business, but there is often help and advice available to help you tackle them before it gets too much to handle.
Before you seek advice about your financial problems, there are certain actions that you can take to minimise their impact, or even reduce your debt burden.
Improve your financial situation
To try and improve your finances, you should:
- calculate your total debt and decide how much you can afford to repay each month
- inform your creditors as soon as possible if you are finding it difficult to pay, you may be able to renegotiate your payments, such as spreading them over longer periods or waiving interest
- tackle any priority debts first - eg rent and utility bills
- assess whether you can improve your cashflow management
If you can't improve your financial situation yourself, or if your debt problems are too much to handle, there are several debt advisory bodies who can offer advice on business debt. See find advice on debt.
You may also decide to borrow money to help you deal with your financial problems in the short term. However, it is important to always consider the risks fully as it can be dangerous to borrow money in order to solve debt problems. It may help in the short term, but in the long term, you could end up paying more.
Protect your business
You should also be careful when seeking advice or finance - for example, you should:
- avoid illegal loan sharks as they are not licensed to lend money and often charge high rates of interest - you could find yourself under immense pressure through intimidation if you default on a repayment
- check the credentials of an organisation before you contact them, and establish what kind of advice is on offer through internet or telephone research -The Financial Conduct Authority (FCA) provides a
- shop around for the best deal and try to seek free advice first - some companies providing debt management programmes charge a fee and may even charge for providing initial advice
Find advice on debt
Where you can find advice on business debt in Northern Ireland from reliable and independent organisations.
There are a number of organisations that offer free debt advice in Northern Ireland. These include:
Professional advisers
Professional advisers can also provide good financial and debt management advice. If you already use an accountant or solicitor, they may be able to help. If you do not already work with one, it may be a good idea to find an accountant or solicitor who specialises in your industry or financial problems.
For more information, see choose an accountant for your business and choose a solicitor for your business.
Banks
Your bank will probably offer financial help and advice as part of their services. But you should remember that your bank has its own position to protect and its interests may not be exactly the same as yours.
Your account manager may be able to help you look at how you are managing your finances and whether this can be improved. They may also help you work out a payment plan, or you may be able to extend your overdraft or renegotiate your account terms.
If you are not happy with the service your bank is providing, it may be time to switch. You may even be able to get a better deal elsewhere. For more information, see choose and manage a business bank account.
Debt counsellors
Although most debt counsellors work with individuals with debt problems, some specialise in business debt management. offer free and impartial debt counselling.
There are also some commercial organisations who can offer debt counselling and management advice, for a fee. You should research and consider a debt management company's reputation fully before working with them.
Find advice on insolvency
How a business can be closed down or taken out of management's control and where to get advice.
If your business can no longer pay your business debts, or if the value of your assets are worth less than your debts, then your business is 'insolvent'.
In many cases, insolvency and its effects are unavoidable. Some businesses, however, may choose to declare themselves bankrupt if debts are completely unmanageable. It is a good idea to research both options before taking any action. It is highly recommended that you seek professional advice before committing to a decision.
For further information about the options available to you if your debt problems have become unmanageable, see insolvency and bankruptcy.