Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • Busting myths about Asset Based Lending 
  • Self-driving cars could hit UK roads sooner than you expect, says Heligan Group
  • New Venture Aims To Help Propel Growth For Start-Ups
  • Building community, one cause at a time
  • How to build a £1 million pension and ISA portfolio
  • 5 Reasons Why Every Office Should Include Flexible Spaces to Work and Their Key Benefits
  • Pension reforms risk higher prices, fewer jobs and slower growth, FSB warns
  • Building Trust in AI Through a Decision-Centric Approach in Manufacturing
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»Features»Four top tips to help SMEs manage business debt
Managing business debt

Four top tips to help SMEs manage business debt

0
Posted By sme-admin on August 6, 2021 Features, Finance

Dealing with the challenges of the pandemic has been incredibly difficult for businesses across the board. A combination of lockdown restrictions and many businesses having to temporarily close their doors has meant that some companies have taken the option of new finance in order to better manage their cashflow. At Barclays alone, over 350,000 businesses were supported with access to more than £29b worth of funding through the government lending schemes during the height of the pandemic. While taking on new finance may not be a new experience for larger organisations, for some SMEs, this may be the first time they are managing business debt.

As we edge out of the pandemic and start orienting towards business recovery, it’s important that SMEs especially are provided with support and advice on how to handle their debts.

Below, Abdul Qureshi, Head of Products and Platforms at Barclays, has put together some guidance and considerations for businesses who are due to start their repayments soon.

  1. Flexible payment terms: SMEs should check their loan options online or talk to their lender about their repayment terms, as these may be flexible. For example, negotiating a longer payment term to help spread out costs could be an option. If repaying a Bounce Back Loan, businesses may be eligible for Pay as You Grow (PAYG), which allows them to extend their term loan from six to 10 years, temporarily reduce the monthly repayments to interest only, or even take a payment holiday for six months. Another recommendation would be to not leave it too late to choose their PAYG options, as some banks will require at least 20 days’ notice for the option to come into effect before their next payment.
  2. Monthly repayment amount: Once the repayment terms have been determined, businesses can work out their monthly repayment amount using online calculators. This is done by inputting the amount borrowed, the monthly interest, as well as the length of time over which they’re going to repay. There are also calculators tailored for Bounce Back Loans that serve as a helpful tool for SMEs wanting to calculate their monthly repayment amounts.
  3. Identify any problems early: To assess cashflow and profitability, small business owners should build a budget to identify any issues that may arise with repayment amounts early on. They shouldn’t wait for things to get better nor be afraid to ask for help. Instead, businesses should be encouraged to talk to their bank or lender promptly, share the challenges they’re facing, and address any issues together sooner rather than later.
  4. Support and resources: If they’re worried about finances or repayments, SMEs can contact their bank or lender as soon as possible. Useful guidance is also available on the Barclays money management hub. For further free advice, businesses can contact organisations such as the Business Debtline, National Debtline or Citizens Advice

Managing business debt may seem daunting initially, however SMEs can take a considered, step-by-step approach to dealing with repayments to help them get ahead of things before they become an issue.

Following the advice above and leaning on the resources available will not only reduce the financial pressure on SMEs, but it will also help set businesses on the path to a healthy recovery from the pandemic.

Author: Abdul Qureshi, Head of Products and Platforms at Barclays

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Busting myths about Asset Based Lending 

How to build a £1 million pension and ISA portfolio

5 Reasons Why Every Office Should Include Flexible Spaces to Work and Their Key Benefits

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
Verify your identity for Companies House

The Newsletter

Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

Sign Up
Events Calendar
    • Marketing
    July 7, 2025

    Bold Business Marketing Specialist Speaks In Swindon This Week

    July 4, 2025

    How Generative AI is Giving SMEs a Marketing Edge

    • Finance
    July 14, 2025

    Busting myths about Asset Based Lending 

    July 10, 2025

    How to build a £1 million pension and ISA portfolio

    • Health & Safety
    July 1, 2025

    Temperatures Soaring: Is Your Workplace Becoming Unsafe?

    January 29, 2025

    UK takeaways guilty of shocking hygiene failures:

    • Events
    July 4, 2025

    £20k grant for female-founded SME up for grabs

    July 2, 2025

    As Seen on BBC Panorama – Brad Burton to Headline The South West Expo in Swindon

    • Community
    July 11, 2025

    Building community, one cause at a time

    June 23, 2025

    Celebrating One Year In Fairford Supporting The Community

    • Food & Drink
    June 23, 2025

    England Cricket Captain, Ben Stokes OBE, takes a stake in Spencer Matthews’ alcohol-free spirits brand, CleanCo

    June 16, 2025

    Hospitality industry risks collapse

    • Books
    April 24, 2025

    Values-Driven Professionalism: A Path to Client Loyalty

    December 2, 2024

    Banish the banshee boss: how to lead without fear – addressing the issue of fear-based management and how NOT to be this manager

    About

    SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

    Join Our Mailing List

    Receive the latest news and updates from SMEToday.
    Read our Latest Newsletter:


    Sign Up
    X (Twitter) YouTube LinkedIn
    Most Recent Posts
    July 14, 2025

    Busting myths about Asset Based Lending 

    July 14, 2025

    Self-driving cars could hit UK roads sooner than you expect, says Heligan Group

    July 11, 2025

    New Venture Aims To Help Propel Growth For Start-Ups

    July 11, 2025

    Building community, one cause at a time

    July 10, 2025

    How to build a £1 million pension and ISA portfolio

    Categories
    • Books
    • Community & Charity
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport & Tourism
    • Wellbeing & Mental Health

    Copyright © 2020 SME Today.

    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.