Step 2 Work out your business and household budget

​Will my creditors think my business outgoings are reasonable?

Many of the figures in the Your business outgoings section of Your budget will be based on your regular bills or direct debits and standing orders from your bank account. You might not have much control over some of these amounts. Your creditors know that this is the case and it is important that the amounts you put in your business budget are based on your true spending.

  • Be careful and be realistic

  • Do not include figures that are less than you are really spending. If your figures on your business budget are too low, this will mean that any payment arrangement that you agree with your creditors will be higher than necessary and you will find it hard to keep to it. 

  • Be sensible about your spending

If your creditors do not think that the amounts are reasonable, this will mean they are less likely to agree to reduced payment offers. If you are not sure, contact us for advice.
     
  • Give reasons if your spending is high

Your business outgoings may be very different to another business, even if that business offers the same service or trade. Make sure you include everything you are spending. If you think that any of your business outgoings might be high, it is important that you tell your creditors the reason why your spending is higher in this area.
     

    It’s your budget 

    You can write this information in the extra information section of your budget or put this information in the letter that you send to creditors with your budget.