Published: 05/01/2026 By Andrew Bailey
First week back after the Christmas break and we have several insolvency enquiries to deal with. The start of the New Year can be a tough time for businesses and individuals. The Christmas period is hugely significant for many sectors and if things have not gone to plan in the last quarter then it can lead to issues going into the next year.If I had some initial thoughts for those facing financial difficulties then this is a reminder that there are options.
For individuals it is worth remembering that there is the Debt Respite Scheme (Breathing Space) giving people what it says on the tin, some breathing space, to deal with their liabilities. It will give individuals legal protection from creditor action for up to 60 days and you can find out more about this at www.gov.uk
There are moratoriums available for businesses, which are essentially there for the same purpose of providing protection whilst options are considered. Naturally, they are a bit more complicated than my one sentence description but take advice if this sounds like it could be helpful.
Often when things are not looking good, consideration is given to raise finance to help cashflow difficulties. Be careful and take time to consider your options when it comes to raising finance. There are many lenders out there that will happily provide you with funds but consider the longer term consequences. What is the overall cost when you factor in arrangement fees, interest, etc. Are you being asked for a Personal Guarantee? Can the business afford this based upon your realistic projections going forward?
Sometimes raising additional funds or a refinance is a good option but often we see the end result for business owners when they have chosen to bring more funds into an ailing business. It has repercussions for them personally in particular when having to face repaying the liabilities as a consequence of personal guarantees.
If you are not sure where to start then word of mouth recommendations are a brilliant way of being put in touch with the right person, an advisor can give you bespoke advice about accounts, insolvency, finance and anything else you need. It is understandable that you may find it a struggle to see the wood for the trees when you are running a business and things are tough but taking the time to speak to friends and contacts about what you are facing, asking if they can help and do they know anyone you can talk to is well worth it.
We are available to talk through options for you or your business and offer an initial meeting free of charge with absolutely no obligation to commit.