If you’re a business owner struggling with debt, you’re not alone. Whether it’s the result of a slow trading period, rising costs, or an unexpected expense, debt can quickly start to feel overwhelming. But there are ways to manage it – and even turn it into an opportunity to get your finances in better shape for the future.
At AK Tax, we work with many small businesses across Kent who find themselves in this very situation. This guide shares practical strategies to help you take back control, reduce the pressure, and start building a more secure financial foundation.
Start with What Costs You the Most
When tackling business debt, it’s important to understand where the real pressure lies. Not all debts are equal – some come with high interest rates that can quietly drain your finances month after month. These are the debts that should be tackled first, where possible.
A good first step is to sit down and look at what you owe, who to, and on what terms. That includes the interest rates, repayment schedules, and how much each one is costing you over time. By focusing on the most expensive debts first, you can stop more money slipping away on interest and redirect those funds into your business instead.
It’s not always easy to face the numbers, especially when cash flow is tight – but understanding your position clearly is the first move towards changing it.
Don’t Be Afraid to Talk to Creditors
If you’re finding repayments hard to manage, it’s far better to be proactive and open a conversation with your lenders or suppliers. Most creditors would much rather hear from you early than chase missed payments later.
There’s often more flexibility than you might expect. In some cases, you may be able to renegotiate payment terms, agree a temporary pause, or even reduce interest rates. It’s all about showing that you’re taking your responsibilities seriously and want to work towards a solution.
We’ve supported many clients through this process – helping them prepare the numbers, set realistic expectations, and speak with confidence. You don’t have to do this alone.
Use Cash Flow Forecasting to Stay in Control
Debt can feel overwhelming when it sneaks up on you – but it’s far less daunting when you can see what’s coming. That’s where cash flow forecasting becomes incredibly useful.
A simple forecast shows when money is due in and out of your business, helping you plan ahead for repayments and avoid nasty surprises. You can spot quiet months in advance, prepare for big expenses, and feel more confident about what you can afford to pay – and when.
At AK Tax, we help clients use tools like Xero to build forecasts that update as your business changes. It’s not about predicting the future perfectly – it’s about giving yourself a clearer view so you can make better decisions today.
Consider Whether Consolidation Could Help
If you’re juggling several different repayments, each with its own deadline and interest rate, it can become hard to keep track – and even harder to feel in control. In some cases, consolidating your debts into a single monthly repayment can simplify things and reduce the overall cost.
Debt consolidation isn’t a quick fix, and it’s not right for every situation. But it can help reduce the stress of multiple repayments and may give you more breathing space. What matters is understanding the full picture before making a decision.
That’s where expert advice really comes into its own. We can help you weigh up the pros and cons, assess how it would affect your cash flow, and make sure you’re not just stretching the problem out over a longer term.
Keep Your Business Lean While You Stabilise
Managing debt isn’t just about repayments – it’s also about making the most of the money coming in. During times of financial pressure, it’s worth reviewing your regular outgoings to see where small savings can be made.
This might mean pausing non-essential spending, negotiating better deals with suppliers, or reviewing service subscriptions. Even modest savings, when put towards your debt, can make a meaningful difference over time.
Of course, cutting back isn’t easy – especially when you’re already stretched. But a short-term shift in spending can help relieve the pressure and give you more room to breathe.
Support When You Need It
We understand how tough it can be to run a business when debt is weighing you down. It’s not just about the numbers – it’s the sleepless nights, the stress, and the uncertainty about what comes next.
That’s why we take a supportive, practical approach at AK Tax. We don’t just look at the debt itself – we look at your whole financial picture. Whether that’s helping you create a manageable repayment plan, talking to creditors on your behalf, or putting a clearer cash flow system in place, we’re here to make the process less daunting.
You don’t need to have all the answers – that’s what we’re here for.
Let’s Find a Way Forward
No business is immune to financial challenges. What matters most is how you respond to them. With the right strategies and the right support, it’s possible to reduce your debt, ease the pressure, and rebuild with confidence.
If debt is affecting your business, don’t wait until it becomes a bigger problem. Get in touch with AK Tax today – and let’s take the first step towards a stronger financial future, together.
