Business Debt solution

 

Running a business comes with financial challenges, and debt can sometimes become overwhelming. Business debt solutions are tailored to help businesses manage or restructure their debts, regain control, and secure a sustainable future. These solutions can vary depending on the size of the business, the amount of debt, and the financial situation.​

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Business Debt Management and Financial Planning

What we can help with

At Acme Credit, we specialize in providing tailored business debt solutions for companies in financial distress. Our services include:

  • Free Financial Assessment: We evaluate your situation and recommend the best course of action.
  • Creditor Negotiations: Our experts work with your creditors to secure favorable terms.
  • Implementation: We guide you through every step of the chosen debt solution.
  • Ongoing Support: We provide continued assistance to ensure your business stays on track.

What directors should know

When a company is insolvent, or close to it, directors have to give proper weight to the interests of creditors, not just shareholders.

  • Carrying on trading when there’s no reasonable prospect of avoiding insolvent liquidation can lead to personal liability. This is called wrongful trading.
  • Paying one creditor ahead of the others can be challenged later.
  • If you signed a personal guarantee, you’re personally responsible for that debt.
  • Closing or dissolving a company doesn’t make its debts disappear. Creditors and HMRC can still act, and directors’ conduct can be looked at.
  • Deadlines are short. Please don’t leave letters unopened.

 

The options for a company in difficulty

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Option What it is Who runs it Main risks
1. Agree new terms informally We ask your creditors, including HMRC, to agree to new payment terms, such as a longer repayment period or lower payments. Creditors do not have to agree. Us, with your creditors. A creditor can refuse, continue adding interest and charges, or take court action. The arrangement is not legally binding.
2. HMRC Time to Pay An arrangement with HMRC to pay tax debts in instalments. You can also contact HMRC directly to request an arrangement at no charge. Us, or you directly, with HMRC. Interest may continue to accrue. HMRC may cancel the arrangement if you do not meet its terms.
3. Full and final settlement An offer to pay a lump sum to settle a debt for less than the full amount owed. Us, with the creditor. The creditor decides whether to accept the offer. You need access to the lump sum, and the settlement may affect the company's credit record.
4. Company voluntary arrangement (CVA) A formal arrangement under which a company repays an agreed proportion of its debts over time. It may suit a viable company experiencing financial difficulties. A licensed insolvency practitioner, not us. Creditors must approve the proposal. A CVA can provide a framework for dealing with company debts, but it does not automatically protect the company from all creditor action. Fees apply.
5. Administration A formal insolvency process intended to rescue the company, achieve a better result for creditors than immediate liquidation, or realise assets for secured or preferential creditors. A licensed insolvency practitioner, not us. An administrator takes control of the company's affairs. The business may not be rescued, and assets may be sold. Fees apply.
6. Liquidation A formal process for winding up a company, realising its assets and distributing funds to creditors in accordance with insolvency law. A licensed insolvency practitioner, not us. The company will normally cease to trade and be dissolved following completion of the process. Directors' conduct may be investigated, and personal guarantees may remain enforceable. Fees apply.

Other ways companies tackle debt

Some companies take out a new loan to pay off existing ones, or replace a loan with one on different terms. We don’t arrange loans, introduce lenders or recommend a lender. Risks include a longer term costing more in total, fees, and security being taken over company assets, and sometimes your home if you give a personal guarantee. Speak to a lender or a free adviser if you’re thinking about it.

Signs your company may need help

  • You are struggling to make monthly repayments.
  • You are getting late payment notices or threats of legal action.
  • You are using one debt to pay off another.
  • Cash flow is shrinking and costs are rising.
  • You can't get more funding because of poor credit.
  • You have missed a payment to HMRC.

Frequently Asked Questions

Will my personal credit be affected by company debt?

Company debts do not automatically become personal debts. However, your personal position may be affected if you have provided a personal guarantee or become personally liable in other circumstances. The consequences depend on your individual circumstances.

Closing or dissolving a company does not automatically remove its outstanding debts. Creditors may be able to take action, and the circumstances surrounding the company’s closure may be investigated. Seek appropriate professional advice before deciding how to close an indebted company.

Yes. We can help businesses review their outstanding Bounce Back Loan repayments, understand the options available and discuss potential repayment arrangements with their lender. The options depend on the company’s financial circumstances and the terms of the loan.

For more information, visit our Bounce Back Loan Debt Solutions page.

We can discuss potential repayment arrangements with creditors, but they are not obliged to agree. Contacting or negotiating with a creditor does not, by itself, prevent court action. Any protection depends on the circumstances and the relevant legal process.

We understand that managing costs can be difficult when a business is facing financial challenges. If our services are not the right fit for your budget, free and independent guidance may be available through organisations such as Business Debtline. We encourage you to explore the options available and make an informed decision based on your circumstances.

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