20+ Years Experience

Specialist Business Debt Help

Business Debt Help Professionals in Bagthorpe

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Business finances are a difficult thing to manage, and a business owner is sometimes going to run into debts that they can’t solve on their own. Our debt solutions offer an easier way to manage the debts of your own business, especially if you own a small business without much support.

But how does it all work, and what makes our debt solutions worth using? Before we can answer that, you have to understand how a debt solution can be useful.

Get in touch today to speak to one of our friendly licenced professionals based in Bagthorpe who can offer free advice to give you the support you need.

Get Free Debt Advice Today in Bagthorpe

We are Business Debt Help experts who have assisted thousands of companies in debt in Bagthorpe with important business debts.

Our amazing team of specialists are based in Bagthorpe and Norfolk, and we will always continue to offer professional advice and support in June 2022.

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Why Choose Us?

Finding information and assistance on finance that might help you on your business path, whether you’re a start-up, an established business, or trying to expand, can be difficult and challenging.

We are aware of the difficulties. We’re here to help you not only comprehend but also overcome them.

That’s why our Business Debt Help experts aim to assist companies in debt all throughout the UK so they can have a better handle of their important business debts.

Our amazing team of specialists are based all around the UK, and we will always continue to offer professional advice and support in June 2022.

We specialise in helping businesses understand debts and finances and our team collaborate with a variety of partners to assist businesses like yours.

Our experts have over 20 years of experience in the debt advice industry, so they are able to easily help you with any questions you may have about your debt.

We offer a number of great company debt help services and are more than happy in assisting you on anything you are unsure about.

Get in touch with one of our professionals today for expert advice!

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How does Business Debt Help Work?

Companies that offer business aid and help, like our company, are ones who provide assistance when it comes to major company bills such as taxes and business rates.

You can also count on our team if you need support should your creditors pursue legal action against you.

Our business assists people in analysing their business finances and determining their next moves.

How Can A Company Avoid Business Debt?

Avoiding debt is easier said than done in most circumstances sometimes it can slowly build up over time and go unnoticed until it’s too late.

Here are a few ways your company can avoid getting into debt:

If you would like any further advice don’t hesitate to get in touch with our team of experts today!

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Costs Of Debt Advice in Bagthorpe

The average cost of debt advice in Bagthorpe  can vary from £90-£2,000 since this is dependent on the type of advice you want for example:

Debt Relief Order

If your company needs a debt relief order it is only £90 to apply for one and it could potentially get your company out of debt depending on how big the debt is.

County Court Administration Order

This cost is usually 10% or less of your overall debt so if your debt was £20,000 your fee would be £2,000 at 10%.

Individual Voluntary Arrangement

There are three factors that add to the cost of an IVA these include: A Nominee fee, A Supervisor fee and Disbursements.

The Nominee fee is the cost for assisting you when giving the IVA proposal to your creditors the fee could either be the first 5 payments into the IVA or £2,000

A Supervisor fee is 15% of any more contributions to cover the ongoing costs of the IVA

Disbursements protect any money paid into your IVA as well as system maintenance and the IVA registration fee.

business debt help Bagthorpe

What is Business Debt?

Debts incurred by limited companies or partnerships are known as business debts.

If you’re a self-employed sole trader, the law doesn’t distinguish between your personal and business funds. There is no clear legal distinction between you and your business, meaning any debts will be classified as personal debt.

On the other hand, Limited Companies benefit from the legal separation afforded by the Ltd company structure, which means that the company’s debts are held by the company rather than the individuals.

What Causes Business Debt?

Debt is a regular occurrence for small businesses in their early stages. A new company typically uses debt financing, such as a business loan or a short-term loan, to cover the costs of its offices, employees, and the product or service it provides.

There are also many other reasons why a business can be in some form of debt during its operation.

Payment & Bills

Delays in payments and unpaid bills are common problems for small companies. Hundreds of millions of pounds are written off in the UK every day due to late payments and unpaid bills.

Nonpayment to small enterprises can have a snowball effect, making it difficult for them to pay workers, buy inventory, or settle debts. Without this funding, businesses cannot invest in their employees, products and services, or marketing to a new audience. As a result, they are less likely to support banks and lenders.

Time Constraints

Small and medium businesses (SMEs) may also face time restrictions due to their day-to-day operations. Businesses without a designated finance officer or team responsible for planning the company’s financial future may not respond as quickly as they would like to industry developments or issues. Time constraints can also lead to a lack of forward planning for new opportunities and hasty decision-making.

Outside Factors

Debts can also be caused by external factors such as market conditions. Customer spending tends to decline when the economy and specific markets are in poor health, resulting in lower revenues.

If a corporation focuses on a niche market, it may be impacted by changes in consumer tastes as well. Furthermore, financial crises can cause interest rates to skyrocket, making banks wary of lending and favouring small and medium-sized enterprises instead.

Small firms are unable to compete as a result, and it is challenging for them to win business when compared to financially solid, revenue-generating medium-sized companies.

Other issues within the company, such as the location of the business, valuable workers leaving, or even lawsuits, could put a stop to earnings. Unexpected problems, such as criminal activity or extreme weather, can also have a cascading effect.

How to Get Your Business Out of Debt

The most common ways to reduce business debts are:

  1. Sell More – Improve cash flow through smart marketing, price increases, and incentives for existing consumers to buy more.
  2. Reduce Costs -Do you need to create some redundancies to cut costs? Is it possible to decrease your workplace space or sell off equipment?
  3. Debt Consolidation – Debt consolidation is a common approach for consolidating many creditors into a single monthly payment.
  4. Improve Payment Terms – Requesting shorter payment terms or utilising an invoice factoring facility are two methods for improving your working capital cycle and debt ratio.
  5. Debt Strategy – Strategic inventory of your debt, classifying it by interest rates and monthly payments due.

At the most basic level, you can try to manage debt repayments by selling more and reducing costs to turn more of a profit, letting you recover debts over time. However, in extreme cases, you may need a specialised debt solution to deal with the problem.

Personal Liability

If you have personal liability for the funds and debts of your limited company or simply do not want any more money worries and debt problems, then we can definitely help. Each case is different, and a debt solution in one situation will not always be the ideal option in another.

Because of this, it is important to explain your exact situation and the kind of debt solutions you are willing to take. Free debt advice can help a lot, but when you are barely able to make debt repayments, a better option might be needed.

If you would like to receive even more information on debt help services, make sure you get in touch with us today!

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Are you personally liable for business debts?

As a Sole Trader

Self-employed people and sole traders may own office space and have a brand name, but there is no distinction between them and the business. You would be personally liable for any debts, and they are treated as personal liabilities – you, specifically, have a legal obligation to try and pay them back.

As a Limited Company

As a director of a limited company, you won’t be personally liable in most cases. However, there are situations where this can be the case: signing a personal guarantee and then failing to meet it, personally overdrawing on a loan or trading while insolvent can all cause this kind of liability.

Can business debts affect your personal credit?

The impact of a business debt on your personal income and credit ratings can vary based on your position within the company. As mentioned before, a self-employed sole trader is responsible for all debts, so a major priority debt will impact their credit ratings in the long run.

Running your business as a limited company will save you from this since the business name is applied to the debt, not your own. However, this can change if you are using your own personal credit to try and finance the business, especially if you change key documents to your own name and not the business name.

Where can I get help with my Business debts?

If you need help dealing with debts from business suppliers, bank loans or other sources, then we can help. Third parties are the best place to go for impartial advice, and we will work as hard as possible to ensure that you continue trading, completely free of the debt you were burdened with.

Your debts belong settled and forgotten, so do not hesitate to contact us if you are struggling. Whether you are a sole trader or a limited company registered in multiple countries, we can help keep your business bank account positive and your payment arrangement clearly defined.

We can assist you with the best specifications, costs and prices. Make sure you contact us today for a number of great Business Debt Help services in Bagthorpe Norfolk.

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Benefits of Business Debt Help

If you need help dealing with debts from business suppliers, bank loans or other sources, hiring a business debt help company like ours can certainly be helpful.

Third parties are the best place to go for impartial advice, and we will work as hard as possible to ensure that you continue trading, completely free of the debt you were burdened with.

Another important benefit of working with our business debt help company is that your debts belong settled and forgotten. Whether you are a sole trader or a limited company registered in multiple countries, we can help keep your business bank account positive and your payment arrangement clearly defined.

Other key benefits you can find when hiring a team like ours are as follows:

Types of business debts?

Business-related debts can come from a range of sources, and not all debt advice or solutions apply to them all equally. One of the most common is income tax debt, followed by the lease debt from commercial business premises. There can also be energy debts, costs of hired equipment, and multiple more.

Not all of these will be a priority debt – a debt that causes serious problems if they are left to build up – but they can still be a problem. Our debt solutions can work towards fixing your debt, but we need to know more about your situation, where the debt came from, and anything else you can tell us.

Priority vs Non-Priority Business Debts

Whilst every debt is important, it is always good to have a list of debts in order of priority/urgency.

The urgency of the debts to be repaid is generally based on the likelihood that you will be threatened with a statutory demand.

We have listed the most common Priority and Non Priority debts below:

Priority Debts

Non Priority Debts

Are Business debts Tax Deductible?

A business loan is not tax-deductible, but you can claim any interest that a loan may have accumulated. However, the loan must have been used for company purposes, and you may have to prove that you did not use it on personal items or services.

A core piece of advice to always follow is to keep personal and business money separate. It can be tempting to use a business loan with business rates on personal items, but this will get a limited company in trouble if taken to an extreme.

FAQs

What Happens If a Sole Trader Cannot Pay Debts?

Sole traders often end up in a unique situation since they are their company. This means that a county court judgment and eventual county court action can eventually put them in danger of being bankrupt themselves.

There is not generally a way to separate the debt from the individual in this situation, at least not without passing it off to another company or coming to some beneficial arrangement.

Here, it is even more important to work with an Insolvency Practitioners Association member since a licensed insolvency practitioner is much more likely to protect your funds – which, as a sole trader, are part of your regular bank account.

How Much Debt is Too Much For a Small Business?

In many cases, having debt above 30% of your business’ capital can be a serious concern but not necessarily a bad thing. Remember that the cause of the debt is more important.

In most cases, though, having any debt that you are uncomfortable with is a bad thing. Entering a voluntary arrangement to lessen it can work, but the debt still exists, just in a different form.

It really depends on your income and the business’ overall profits, so do not follow the “30%” as a solid statistic. You can have a debt worth under 25% of your capital and still be in trouble, especially if interest is involved.

Is my business debt tax deductible?

A business loan is not tax-deductible, but you can claim any interest that a loan may have accumulated. However, the loan must have been used for company purposes, and you may have to prove that you did not use it on personal items or services.

A core piece of advice to always follow is to keep personal and business money separate. It can be tempting to use a business loan with business rates on personal items, but this will get a limited company in trouble if taken to an extreme.

What is a Company Voluntary Arrangement?

A company voluntary arrangement (CVA) is a process that allows a business to resolve debts by paying only a part of what it owes to creditors.

A CVA allows a business to reach an agreement with creditors over the payment of its debts.

Can a business control debt?

In short, yes, it’s highly possible for a business to control the debt incurred. The best way to control debt in Bagthorpe is to be smart about your situation. First of all, when working with a third party like us, give as much relevant personal information as possible, from your company number to more specific details about the debt itself. Third-party cookies can keep these details saved on websites.

Are you a sole trader? Have you been actively paying for National Insurance? Could your tax code have changed? The more we know about your situation, the more confidential advice we can offer, giving you practical self-help options based on the circumstances of your own debt.

While each business can try to cut back on their expenses and raise money to pay off a debt, there is not always time. Sometimes, a more immediate solution is needed, and that is when you might have to rely on more than just checking your interest rates or cutting back on what you spend.

What about personal liability?

If you have personal liability for the funds and debts of your limited company or simply do not want any more money worries and debt problems, then we can definitely help.

Each case is different, and a debt solution in one situation will not always be the ideal option in another. Because of this, it is important to explain your exact situation and the kind of debt solutions you are willing to take.

Free debt advice can help a lot, but when you are barely able to make debt repayments, a better option might be needed.

Summary

If you want to know more, you can contact us directly to ask any burning questions on your mind. Debts are scary, and finding a way to build up a proper strategy can be hard, so our expertise might end up being the thing that saves your company – or your personal finances – from being drained.

Find More Info

Make sure you contact us today for a number of great Business Debt Help services in East of England.

Here are some towns we cover near Bagthorpe.

Bircham Tofts, Barmer, Great Bircham, Bircham Newton, Great Barwick
Sort Your Business Debts Today

What Others Say About Our Services

We absolutely love the service provided. Their approach is really friendly but professional. We went out to five different companies and found Business Debt Help to be value for money and their service was by far the best. Thank you for your really awesome work, we will definitely be returning!

Harrison Griffiths
Birmingham

We have used Business Debt Help for many years as they are certainly the best in the UK. The attention to detail and professional setup is what makes this company our go-to company for all our work. I highly recommend the team for the immense work - we highly recommend them!

Kieran Hawkins
York

For more information on Business Debt Help services in Bagthorpe, fill in the contact form below to receive a free quote today.

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