Personal Debt Doesn't Mean Personal Failure

When you started your business, you probably imagined growing it.  You focused on winning new customers.  How you would employ people.

You spent time and energy thinking about building something you could be proud of.

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You probably didn't imagine lying awake at three o'clock in the morning wondering how you were going to pay your mortgage because you'd put the business first and yet there are not many business owners that haven’t found themselves in exactly that position.  And you maybe feeling that too, right now.

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They felt this, not because they've been reckless and it certainly wasn’t because they didn't care.

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Quite often when you’re running a business, you’ve cared too much about it; always putting the business first, ahead of yourself and often before your own personal finances.

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At Certus, we meet directors on a regular basis who have spent months, sometimes years, doing everything they could to save their business.

They have injected personal savings, worked without taking a salary, borrowed money from friends and family, drew down on a pension, signed personal guarantees.

They carried the weight of responsibility for their employees, customers and families and by the time they pick up the phone to us, they aren't just worried about the business anymore. They're worried about themselves.

How Does it Get To This Point?

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Very few business owners set out to borrow personally, this usually happens gradually, over time.

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It may start with just one supplier who needing paying whilst you were waiting for some debts to be collected.

Then a VAT bill which was slightly higher than you expected, and then staff wages.

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You tell yourself you'll repay yourself when that large outstanding invoice is paid.

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Then you use a personal credit card.

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Then you change supplier as you ran out of credit with the other one down the road and they are insisting you sign a personal guarantee.

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Before long, your personal finances and your business finances become so closely linked that it's difficult to separate one from the other.

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Financial Difficulty Doesn't Define You

One of the biggest misconceptions we come across is that financial problems are a sign of personal failure.  They aren't.

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When we run a business, it means taking risks. Sometimes markets change. Sometimes customers fail. Sometimes costs rise faster than anyone could have predicted.

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Financial distress doesn't define who you are, it simply describes the situation you're facing today.

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You Probably Have More Options Than You Think

Many people contact us believing there are only two outcomes.

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Carry on and hope things improve.

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Or go bankrupt.

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In reality, there are often several possible routes, but until someone understands your whole situation, it's impossible to know which one is right.

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Depending on your circumstances, the options might include:

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• Informal arrangements with creditors
• Time to Pay arrangements with HMRC
• Negotiated settlements
• Refinancing
• Selling assets
• An Individual Voluntary Arrangement (IVA)
• Bankruptcy
• Or a combination of different solutions

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The right answer depends on your circumstances, your income, your assets, your liabilities and, just as importantly, what you want your future to look like.

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Why We Ask So Many Questions

People are often surprised that our first meeting isn't about recommending an insolvency procedure.  For us, it’s about understanding the whole picture.

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We'll want to understand your business, your personal finances, any personal guarantees, your household commitments, your assets, your concerns and your goals.

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Only then can we explain the realistic options available to you.

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Sometimes the solution is much simpler than people feared.

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Don't Wait Until You're Out of Options

One of the biggest mistakes we see is people waiting too long before asking for help.

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Not because they're ignoring the problem, it’s usually because they're hoping things will improve.

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The earlier you understand your position, the more opportunity there usually is to consider the full range of options available.

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Looking Ahead

Our role isn't to judge how you got here. We’re here to help you decide where you go next.

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Sometimes the next chapter involves saving the business.

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Sometimes it means closing a company properly whilst protecting your future.

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Sometimes it's about helping you rebuild personally before you build again professionally.

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Whatever your circumstances, understanding your options is always the best place to start.

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At Certus, we believe financial distress is a chapter, not the whole story.

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Our purpose is to clear the path through financial uncertainty, allowing business owners to move towards a calmer, more positive future.

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Because when you have clarity, you can move forward.

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Take the Next Step

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Every situation is different. If you're facing financial uncertainty, we're here to help you understand your options in plain English, without pressure or judgement.

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Book a confidential initial consultation with the Certus team and start your next chapter with clarity.