It’s no secret that times are hard for businesses across Northern Ireland and beyond following years of a challenging landscape. If you’ve had to borrow money or seek debt advice to keep your business afloat, you’re not alone. Advice NI’s specialist Business Debt Advisers have managed £8.38 million in business debt across in the past year, providing crucial support to business owners. Here’s what happens when you reach out to a debt service like Advice NI.
Understanding the Process
Sinead Campbell, Head of Money, Debt and Quality at Advice NI, explains, “When businesses reach out, we provide tailored support and act as a first step in finding a solution. Operational costs for materials, utilities, and fuel remain high – paired with wage inflation, difficulties in retaining staff, and fears of losing business over increased pricing, it’s an extremely challenging time for business owners.”
“Every call is different, which is why we provide bespoke advice. The outcome can range from offering budgeting advice to taking immediate action if a company has received a debt collection notice,” says Sinead.
Finding a Solution
The solutions provided by Advice NI vary for each business. If a business owner is feeling overwhelmed, the advisers will offer support and advice to help them take back control of the situation. They will provide business owners with available options, whether it’s continuing to trade, how to improve credit processes or considerations if ceasing to trade.
Sinead continues, “A recent case study involved a director of a limited company with good earnings. They had accrued a £47,000 debt to a supplier during the COVID-19 pandemic. The supplier rejected repayment offers and had started to charge monthly penalties, eventually passing the debt to a collection agency. Advice NI’s Business Debt Adviser quickly established that there were no personal guarantees, removing personal liability for the debt.
“The adviser discussed options with the client, who decided their best course of action was a repayment proposal to the creditor. With the client’s agreement the adviser negotiated a structured payment plan of £2,000 per month for 23 months, plus a final instalment of £1,000, excluding penalties and interest charges. The client was extremely relieved and appreciative of the timely resolution which took just two weeks from the first call to closure.”
Another recent case dealt with by Advice NI’s Business Debt Service involved a director of a construction business that had become non-viable post-lockdown. The client had a bounce-back loan (BBL) of £34,000 and no other significant debts. The client sought advice on managing the BBL as he planned to retire and wind down the business. Advice NI discussed the Pay As You Grow (PAYG) option and recommended contacting the bank to update them on the business’s current circumstances.
Sinead adds, “The bank agreed to implement the PAYG option and review the situation in six months. This outcome provided the client with breathing space and eased personal financial pressures, allowing him to proceed confidently towards closing the business.”
Ongoing Support
Sinead emphasises that support from Advice NI doesn’t end after the first phone call or initial appointment. “We stay in touch with our clients throughout their journey, providing tailored advice, information, and guidance to help them feel empowered to tackle their financial situation head-on,” said Sinead.
Advice NI and the Independent Advice Network is made up of 64 members and more than 300 advisers across Northern Ireland, all providing free, impartial, and confidential advice. Struggling businesses can call 0800 915 4604 or email [email protected] where they can speak directly with a business debt adviser between 9am and 5pm, Monday to Friday. You can find downloadable business self-help materials on our website https://www.adviceni.net/money-debt/business-debt.
