If your business is struggling with debt, getting the right advice early can help you understand your options and decide what to do next. Whether you're behind on tax payments, struggling to pay suppliers or worried about keeping your business afloat, free support is available.
The right service will depend on your circumstances, including whether you're a sole trader, self-employed or running a limited company.
In this guide, we explain where to find free business debt advice, what each service can help with and when you may need specialist professional support.
8 ways to get free business debt advice
1. Business Debtline
Business Debtline is a specialist debt advice charity offering free, independent and confidential support to self-employed people and small business owners.
Its advisers can help you understand your debts, work out what you can afford to pay, communicate with creditors and explore possible solutions. It also provides practical tools and guidance on dealing with business and personal debt.
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Contact Business Debtline early if you're struggling to manage repayments. Having a clear picture of your income, outgoings and outstanding debts can help you get more useful advice.
2. Citizens Advice
Citizens Advice provides free information and advice on debt, money problems and legal issues. Its services can be particularly helpful if business financial difficulties are also affecting your personal finances.
The support available varies depending on your circumstances and location. Sole traders may be personally responsible for business debts, whereas a limited company is generally a separate legal entity.
Citizens Advice can help you understand personal debt issues and identify suitable support, although it may not be the right service for every limited company debt problem.
3. The British Business Bank
The British Business Bank provides information on managing business debt, improving cash flow and understanding business finance.
It isn't a dedicated debt advice service, but its guidance can help you understand your financial position and identify questions to discuss with a specialist adviser.
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Don't assume that taking out another loan is the best way to manage existing debts. Review your cash flow and repayment commitments before considering additional borrowing.
4. Government Business Support Services
The UK Government provides free business guidance through services available in different parts of the country.
Depending on where your business is based, you can explore:
- England: Business Support Service
- Wales: Business Wales
- Scotland: Find Business Support Scotland
- Northern Ireland: Invest Northern Ireland
These services can provide general business guidance and help you identify relevant support schemes. They aren't necessarily specialist debt advisers, so you may need a dedicated service for help dealing with creditors or insolvency concerns.
5. HM Revenue & Customs (HMRC)
If your business is struggling to pay tax bills, such as VAT, PAYE or Corporation Tax, contact HMRC as soon as possible.
Depending on your circumstances, you may be able to arrange a Time to Pay agreement, allowing you to repay eligible tax debts in instalments.
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Don't wait until a tax payment is overdue to seek help. If you think you may struggle to pay, contact HMRC promptly to discuss your circumstances and find out whether a payment arrangement is available.
6. Your Business Bank
Your existing business bank may be able to discuss options if you're struggling to meet loan repayments, manage an overdraft or cover essential business costs.
Depending on your circumstances and the products you hold, your bank may consider changes to repayment arrangements or other ways to manage your borrowing.
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Speak to your business banking team as early as possible. Explain your financial position clearly and ask what support may be available, including whether any changes to existing repayments can be considered.
7. Accountants and Insolvency Practitioners
Your accountant may be able to help you review your finances, prepare cash-flow forecasts and understand which payments need prioritising. Some accountants offer an initial consultation at no charge, although ongoing work will usually incur fees.
If your limited company may be insolvent, consider speaking to a licensed insolvency practitioner about the options available. Some offer free initial consultations, but this isn't guaranteed and subsequent services may be chargeable.
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Before agreeing to any service, check the professional's qualifications, what the advice covers and whether fees will apply. If your company may be insolvent, seek appropriate advice promptly rather than waiting for the situation to worsen.
8. Local Business Support
Your local council, growth hub or business support network may offer free business guidance, mentoring or access to relevant support schemes.
These services can help you review your business plans, improve cash flow or identify funding and support programmes. However, they may not have the expertise to advise on formal insolvency procedures or complex creditor disputes.
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Check your local council's website for business support services and mentoring schemes. Use these alongside specialist debt advice if you're struggling to repay creditors or tax bills.
What should you do if your business can't pay its debts?
If you're worried about your business's finances, taking action early can give you a clearer understanding of the options available.
Consider the following steps:
- Review your finances. List outstanding debts, payment deadlines, available cash, expected income and essential operating costs.
- Contact creditors promptly. Explain your situation and ask whether a temporary repayment arrangement is possible. Don't assume a creditor will agree to one.
- Speak to HMRC about tax arrears. Ask whether a suitable payment arrangement is available if you cannot pay your tax bill in full.
- Get independent debt advice. A specialist adviser can help you understand your obligations and the options available for your circumstances.
- Seek specialist insolvency advice if necessary. If your company may be unable to pay its debts as they fall due, get professional advice promptly. Directors of financially distressed companies need to pay particular attention to their duties and creditors' interests.
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Avoid taking out further borrowing simply to cover existing repayments without first assessing whether the business can afford it.
Get help with business debt early
If your business is struggling financially, you don't have to work through the situation alone. Free specialist services can help you understand your debts, communicate with creditors and explore your options.
Start by contacting an appropriate debt advice service, such as Business Debtline or Company Debtline, depending on your business structure. If tax arrears are involved, contact HMRC as well.
The sooner you understand your position, the sooner you can make informed decisions about the future of your business.
This article is for general informational purposes only and does not constitute financial or professional advice. Always seek professional guidance before making any decisions.
