Running a company means making tough calls—and sometimes that includes borrowing money just to keep going. If you’ve taken out high-interest loans or short-term finance to keep the lights on, you’re not alone. Many directors do this in good faith, trying to protect their business, their team and their future.
But if those repayments are now crushing your cash flow, you’re likely feeling trapped. The stress can be overwhelming, especially if your company has no real assets left to sell. So, what are your options?
If your debts are mounting, start with these questions
If you’re losing sleep over company debt, start by asking yourself a few key questions. These might not have easy answers straight away—but they’ll help you understand what kind of support you need:
- Were the loans taken out in your name or the company’s?
- Did you sign a personal guarantee?
- Can you remember or access the loan terms and conditions?
- Are there any company assets left that could cover part of the debt?
You don’t need to figure it all out alone. These are exactly the kinds of questions we can help you untangle. Whether you’re looking to restructure or close your business with debts, speaking to an expert can help you see what’s realistic and what your next step should be.
High-cost company debts from online lenders?
Short-term business loans and online finance platforms can seem like a lifeline when you’re under pressure. The money lands fast. The application is easy. But these loans can come with sky-high interest rates and harsh repayment terms.
Once you miss a payment or two, things can escalate quickly. You might find yourself dealing with aggressive recovery tactics, legal letters or threats of court action.
If this sounds familiar, you’re not alone. We speak to company directors every day who are in exactly this position. They often don’t remember signing personal guarantees. They feel misled by the speed of the process. And they’re unsure what rights they actually have now the debt has become a problem.
If this is you, know this: you do have options. We can help you face the situation head-on and work out the best way forward, whether that’s a repayment plan or a route to close the company and leave the debt behind.
Struggling to repay a Bounce Back Loan?
Debts to HMRC—like PAYE, VAT or Corporation Tax—can cause huge stress. HMRC has wide-reaching enforcement powers and, unlike other creditors, is often proactive in escalating legal action.
But HMRC also tends to be practical. If you engage early, they’re often open to Time to Pay arrangements or structured solutions. This is when it helps to have someone experienced on your side—someone who knows how to present your case and avoid misunderstandings that could harm your company.
If your tax debt is already out of hand or you’re facing threats of legal action, don’t wait. Formal insolvency solutions like a CVA or liquidation can protect you and bring things back under control.
What are your options if you can’t repay business debt?
There’s no one-size-fits-all answer. But if your company is overwhelmed with debt, there are four main insolvency solutions that could be available to you:
Company Voluntary Arrangement (CVA)
A CVA is a formal deal between your company and its creditors to repay what you owe in affordable monthly instalments. It allows you to continue trading while repaying debt over time, and it can pause legal action during the process. This option can be great if the business still has a future but needs breathing space to recover.
Administration
Administration can give temporary protection from creditor action while a licensed insolvency practitioner works out a recovery or sale plan. This solution is only possible if your business has valuable contracts, staff or assets that mean it could regain profitability.
Creditors’ Voluntary Liquidation (CVL)
If there’s no possibility of recovery, a CVL is a legal way to close a business with debts. An insolvency practitioner steps in to sell off any remaining assets and formally shut down the company. After that, remaining debt is written off, including Bounce Back Loans and other unsecured borrowing.
Start Afresh Liquidation
Depending on your situation, it could be possible to close your company using a CVL and start again with your business under a new company. It’s a fully legal process but there are strict rules to follow.
Delaying action can limit your choices, especially if creditors take legal action. Acting early gives you the best chance of saving your business, protecting your personal position and reducing the impact of limited company debt.
We’re here to help you take back control
If your company can’t keep up with debt repayments, the worst thing you can do is nothing. Delaying action can mean creditors take matters into their own hands—freezing bank accounts, sending bailiffs or even petitioning for your company to be wound up.
By taking action early, you can choose your next step, instead of having it forced on you. Whether you want to fight for the business or exit cleanly, there’s a legal, fair and manageable route to get there.
Our licensed insolvency practitioners will walk you through your options, explain what it all means for you personally, and give you clear advice that’s tailored to your situation. Get in touch today for free, confidential advice and start taking control of your company’s future.
