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Company Debt Help and Advice

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If you need help understanding the best way forward for your company, we can provide confidential free initial advice. You can book a free virtual meeting or call us on 0800 612 5448.

Company Debt Help and Advice.

Company Debt Help and Advice remain a widespread UK difficulty for company directors, especially during the Coronavirus COVID19 pandemic that has impacted on many UK businesses is debt.

What is company debt?

Company debt is when the money owed may not be paid to the company’s creditors. A sign the company is undergoing debt problems is insufficient cash flow in the business.

In the UK. Limited companies are legally separate legal identities. They are not unlike another individual. Therefore, any debt limited company incurs financially or contractually belongs to the limited company, and not to you as an individual. Hence, the term Limited Liability being the company is liable, not the individual.

However, please note, individuals who either trade in their name as a sole trader or a partnership do not have the protection of limited liability. The debts remain their liability alone.

Company debt forms a crucial part of companies working capital. It only becomes an issue when the companies remain unable to repay it.

So a limited company considering borrowing capital to purchase new equipment for the company to either adds to or improve productivity while replacing old, less efficient equipment. Therefore, it remains deemed accepted as the company’s increased debt compensates once the equipment bought commences generating revenue for the company.

However, raising additional monies for your company when either desperate or unplanned adds other stresses to a company and its directors. Therefore, keep keen on your company’s cash flow management, ensuring you do not practice reactive management.

Speak with your accountant for any assistance with generating a cash flow spreadsheet,

HBG Advisory, assist many companies of all sizes throughout the UK. 

We offer simple hassle-free services to distressed company directors. 

For further reading, click on Company Debt Advice

Priority Debts

However, maintain were possible paying creditors. Though consider paying in order of priority as below.

For further help, please contact HBG Advisory on the contact details listed on this page.

Therefore prioritise:

  • HMRC: 
    • National Insurance;
    • Income Tax;
    • PAYE;
    • VAT; 
  • business rates;
  • business premises rent; 
  • accountants;
  • company suppliers.

Lower priority items should rank lower to repay, like; 

  • non-essential company suppliers, 
  • company credit cards  
  • bank overdrafts.

If debts continue growing within your company? Then commence correcting the situation fast.

What options do I have?

  1. Raise additional working capital;
  2. reducing operating costs;
  3. HMRC are the UK’s most significant creditor, 
  4. contemplate rescue options like a Company Voluntary Arrangement (CVA);
  5. Ensure to fend off a winding-up petition; otherwise, the following action is a compulsory liquidation. The threat of such action is often used as leverage by anxious creditors of the company, including HMRC. If you are potentially under threat, consult an Insolvency Practitioner.

However:

Even though a limited company provides some protection for directors, you can still be found liable for company debt and potentially have your credit rating affected if;

  • Directors subject to guarantees personally for the company’s debt, loans:
  • the company traded while insolvent. The possible wrongful or fraudulent trading implication?; has operated;
  • undervalue sale of company assets;
  • directors have overdrawn directors outstanding.

Help available with Company debt 

Contact us today for any assistance if your company falls into debt troubles. We have significant experience in this area and are always ready to give our best advice.

Categories: Implications for Directors

  • Bounce back loans and Liquidation;
  • personal guarantee what happens in Insolvency?;
  • bounce back loan general advice;
  • help for companies affected by coronavirus;
  • not enough money to pay employees’ redundancy, outstanding holiday pay and notice?;
  • directors liabilities and responsibilities;
  • what will happen to directors after Liquidation?;
  • How to clear HMRC debt?

HBG Advisory operate this website for company directors who wish to ask questions and have clear, understandable answers. 

A free meeting with HBG Advisory confidential. The sooner you act, the quicker we can commence removing your

stress. 

Please then, call 0800 612 5448 for assistance with aspects of Company debt help and advice?

The “Simple business debt guide” for anxious directors

  • Are you anxious about your company’s cash flow? 
  • Impact of Coronavirus Covid-19? 
  • How to pay employees wages on payday? 

Then please view our straightforward to read webpage, simple business debt guide for anxious, concerned directors today. Or please call HBG Advisory on FREEPHONE 0800 612 5448 in confidence.

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