Understand the position
Clear information before you decide what to do next
Advice for company directors dealing with unpaid suppliers, lenders, landlords and other business creditors.
- Map creditor balances and enforcement stages
- Distinguish secured and unsecured claims
- Build a realistic communication and payment plan
Not every creditor has the same rights
Secured lenders, landlords, suppliers, employees and judgment creditors may have different remedies. The first review should identify security, court action, retention of title claims and services essential to continued trade.
Communication should be supported by figures
Creditors are more likely to consider a proposal that explains the cause of arrears, current cash flow and a realistic payment timetable. Promises the company cannot keep can reduce confidence and accelerate action.
A collective solution may be needed
Separate payment plans can fail when the total monthly burden is unaffordable. A CVA, administration or liquidation may provide a structured answer where the company cannot deal with creditors individually.
Practical next steps
What to prepare now
A clearer picture helps the first conversation focus on realistic options.
- List every creditor and current action stage
- Identify security and personal guarantees
- Protect essential supply and customer delivery
- Compare individual plans with a collective solution
Common questions
Company Creditors and Unpaid Debts FAQs
Can a supplier issue a winding up petition?
A qualifying creditor may pursue a petition where the statutory requirements are met. Earlier collection and court steps may also be available.
Should I pay the creditor threatening the most action?
Not automatically. When insolvency is likely, directors should consider creditors as a whole and review the consequences of selective payments.
Can a CVA include trade creditors?
Yes. A CVA can bind unsecured creditors if the required voting approval is achieved and the proposal is properly implemented.
This page provides general information and is not legal, tax or financial advice. The right action depends on the company’s circumstances. Formal insolvency procedures must be handled by an appropriately authorised professional.
