Step 3 Dealing with your priority debts

Negotiating with your bank

If you are facing debt and cashflow problems, it is essential that you speak to your bank. If possible, make an appointment to see them. There are a number of options that you could think about putting to the bank. These will depend on your business plan.


business plans

Your business plan is not just for the bank, it is mainly for your peace of mind. It should show you how you can trade out of your difficulties and improve your business performance. The proposals you put forward, and the bank’s response, will depend on your circumstances. Contact us for advice.

Your local enterprise agency may be able to help you prepare a business plan – contact your local Chamber of Commerce for details of what’s available in your area.



Should I consider changing my bank?


always try to negotiate

Always try to come to an arrangement with your existing bank before moving your account. If you are in doubt, or you would like more information about business bank accounts, contact us for advice.

This is not an easy question to answer. It is often better to stay with your current bank. This is because they know you and are more likely to listen to your problems and help you. However, in some situations, it may be appropriate to change banks. For example, it may be better to open an account at another bank if:

  • your own bank will not listen to your proposals;
  • you are finding it difficult to manage your banking; and
  • the debts you have with your current bank are unsecured.

However, if you have a poor credit history, you may find it difficult to open another bank account.

Make sure you keep your new account in credit to avoid running up another debt and making your problems worse.

If you are able to open a new account, treat any unsecured debts with your old bank as non-priority debts.

Dealing with your non-priority debts

Remember to treat any secured debts with your old bank as priority debts.