Dealing with Growing Business Debt

Although this is a good news story, it is a harsh reminder of the continued struggle in todays markets. The catalyst in this case was a continued rise in the amount owing to the HMRC and therefore the amount being requested monthly. 

As we are all aware, without cashflow, we have no business. I think we are also too familiar with using personal funds and lines of credit to fund what is already a failing business. The problem; we as directors end up in personal financial distress, resulting in needing to take more money out of the business as wages or dividends. The knock on effect, you end up in an Overdrawn Directors Loan account that is at speed getting out of control.

Is a fresh start the right answer? In most cases, YES!

Marks growing company debt worries

Mark, a company director owed approximately £80,000 worth of business-related debt and was struggling to pay over £2000 a month.

Mark buried his head in the sand. Everything became too much and he didn’t know where to start or how to deal with the cash flow problems he had.

Asking for business debt help can be scary

Burying your head in the sand is bad, not just for your business but for your own mental health. We understand that asking for help is scary, it can give you a sense of failing. But there is help out there!

The debt solution we advised 

Voluntary Liquidation. He received over £11,500 in a redundancy claim and the Company was placed into liquidation within 6 weeks.

Mark wrote off approximately £80,000 in business debt and is now a director of a new limited company having learnt from previous lessons.

With the help and advice from Company Money Worries, Mark made a fresh start and has never looked back.

Are you struggling with increasing business debt and don’t know where to turn? Our team are here to help. Get in touch today or check if you qualify for free no fees company debt advice.

Please note, the case study is real however the name of the client has been changed to protect their privacy.