UK business debt relief: options for saving your company
By Mr Bankruptcy
18th February 2026
Britain’s small and medium sized business owners and managers are the lifeblood of the national economy. But in order to survive these difficult times, many have had to take on business debt which they are now struggling with; it can feel like a never-ending battle.
Despite the fact that others depend on you for paying their bills and keeping a roof over their heads, it may seem there’s no-one to help you when you need it. On the contrary, as a debt advisor and adjustor, I’ve been able to help many clients negotiate the different ways that exist to tackle debt, and to get their business back on track.
Understanding your business debt relief options
Business debt relief options in this country offer a lifeline for companies overwhelmed by debt. Whether you are responsible for an SME or a larger business, understanding your options, and the differences between them, is crucial.
- Debt Management Plans (DMPs). These are informal agreements with creditors to freeze interest and reduce payments and are suitable for smaller businesses with manageable debt.
- Company Voluntary Arrangements (CVAs). Formal restructuring agreements with creditors to repay debts over time (often three to five years), CVAs can be used to reduce payments, freeze interest, and protect a business against creditor action (administered by licensed Insolvency Practitioners only).
- Administration. This is a formal process where an insolvency practitioner takes control in order to restructure or wind down the business. It can be used to protect against creditor action, but it will impact negatively on credit ratings in the future (administered by licensed Insolvency Practitioners only).
- Liquidation. Liquidation means winding down your company so that you can pay off you’re your creditors. It is seen as a last resort, but sometimes it’s necessary (administered by licensed Insolvency Practitioners only).
Government support and schemes
The government offers support for businesses struggling with debt or looking for necessary finance or advice. This ranges from local, national or sector-specific funding schemes to pointing you in the direction of more favourable lenders or advice schemes.
Talking to HMRC can also lead to a tax deferral, a payment plan for easing cash flow pressures.
A case study
We have helped a wide number and variety of clients with unmanageable business-related debt. I was referred to a company in dispute with one of their trade creditors who was about to crystalise a £942,000 debt on their balance sheet.
If this had happened, the company would have become insolvent and been liquidated. This would have led to a loss of a number of jobs at this and two associated companies. On top of that, the company Director had provided a personal guarantee of £250,000 which would have resulted in his bankruptcy as well.
After analysing the situation and presenting a commercial argument based around the likely outcome of litigation, we were able to negotiate a full and final settlement with the creditor to avoid insolvency.
The creditor eventually accepted £264,000 in full and final settlement, writing off nearly £680,000 and releasing the director from his personal guarantee.
Take action, early
Struggling with debt doesn’t mean it’s all over for your life’s work, or for a new start-up idea. UK business debt relief options offer potential pathways to recovery that allow you to take control, explore solutions, and rebuild your business. The important thing is to act early and not let your debt spiral out of control.
James Rosa Associates
Finding a trusted advisor who understands your situation and who can offer the expertise you need to guide you through your options is an important first step to clearing problem debt.
At James Rosa Associates, we understand that clearing large debts isn’t just about numbers; it’s about reclaiming your financial independence and creating opportunities for the future.
We are a firm of expert debt advisors and debt adjustors with a proud reputation for dedication, integrity and the quality of our advice, which we give in a supportive and non-judgemental environment.
In addition to debt advice for businesses, James Rosa Associates also offers a full range of advice to individuals, business owners and directors with one thing in common; they have a problem with an unmanageable debt and want to tackle it. We also offer civil and commercial dispute resolution.
Our range of services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Apply for a free consultation
We know from experience how unmanageable debt can affect businesses and the lives of employers and employees who rely on them for their livelihoods. That’s why part of our business model is to help as many people as possible.
Therefore, if you want to deal with your unmanageable debt, or want to bring a dispute to a swift and cheaper resolution, then contact James Rosa Associates today.
Ring us on 0845 6807217 or email enquiries@jamesrosa.co.uk and ask whether you qualify for our free consultation service.
How rising interest rates affect your debt
By Mr Bankruptcy
4th February 2026
Rising interest rates are a concern for anyone with debt in the UK, particularly if that debt is growing unmanageable. So, it was a relief to many when the Bank of England (BoE) cut its base rate by 0.25% to 3.75% just before Christmas. This was the signal many other lenders were waiting for to follow suit.
However, with inflation showing signs of creeping back up again, it’s not beyond the bounds of reason for the Bank’s monetary policy committee to raise the BoE interest rate in the future, to try and bring inflation back down.
So what can people do with this breathing space to prepare themselves for a future hike in their interest repayments?
What do rising interest rates mean for you?
When interest rates go up, so does the amount of interest a borrower has to pay back each month, putting increased strain on personal, family, and business finances.
Whenever the BoE raises its base rate, so do banks and credit companies. Anyone with a tracker or variable rate mortgage will soon notice they have less spare cash at the end of each month.
Fixed-rate mortgage deals and loans offer a temporary shield from base rate rises, but refinancing at the end of their fixed periods can be expensive. Many mortgage owners coming to the end of a five-year, fixed interest deal this year could get a shock when they have to remortgage.
Taking on a new loan will also be more expensive, and deals may be harder to find as lenders become more cautious. Business owners with variable-rate loans will also face a squeeze on their margins which mean making some difficult choices.
While interest rates on unsecured debts (e.g. credit cards or overdrafts) tend to be fixed, their higher rates (due to the extra risk involved) don’t make life any easier for people in debt, and missed payments will worsen a debt situation.
7 steps to protect yourself against an interest rate hike
With all of this in mind, a period of relative respite is a good time to think about steps for protecting yourself against high interest rates in the future.
- Review all your debts. If you know what debts you owe, their interest rates and loan terms, you can prioritize them and start overpaying each month, to reduce the impact of a future rate rise.
- Mortgage overpayments. If your terms allow it, making overpayments now while rates are relatively lower can reduce your total balance and future interest payments. Beware of early repayment charges though.
- Fixed vs variable? If you are on a tracker or variable rate mortgage, consider a fixed-rate deal to switch to. This may start out more expensive but will make repayments more predictable and manageable in the long run.
- Cut non-essentials. Redirect any savings you make to paying down your loans.
- Explore debt solutions. Combining debts into one debt consolidation loan, for example, can reduce overall monthly payments.
- Balance transfers. Investigate whether you can transfer a credit card balance to a card with a lower rate. Moving balances to a 0% interest balance transfer card can freeze interest for over a year, giving you a window to pay down the principal sum.
- Build a financial buffer. An emergency fund to cover at least one month of essential expenses will help to insulate you against future financial surprises.
Now may also be a good time to seek advice; debt charities or a professional debt advisor can suggest more options for dealing with debts while the sun’s still shining.
James Rosa Associates
Even when it seems there’s no clear way forward, support is always available to help you understand your options and find a way to a more sustainable financial situation.
James Rosa Associates is a firm of debt advisors and debt adjustors noted for our supportive, non-judgemental and friendly approach to helping clients. We offer tailored advice to individuals and businesses facing unmanageable debt who are looking for a solution.
We also help people and businesses entangled in civil or commercial disputes to reach an equitable resolution.
We are fully authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions suitable for their individual circumstances.
Find out if you qualify for a free consultation. Our full range of professional services includes:
Discover whether you qualify for a free consultation
We aim to help as many people as possible to find a way out of unmanageable debt, or to bring a dispute to a swift and cost-effective resolution. For this reason we offer a limited number of free consultations to selected clients who can benefit from taking positive action.
Contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk today to find out whether you qualify for our free offer.