New Year 2026: reviewing your business finances for the year ahead

The start of a new year is a natural moment to take stock of where the business stands financially. This is a short, no-judgement guide to doing that well, particularly if some of last year felt tight.

1. Gather, do not panic

Before deciding anything, line up the facts. Pull together a recent month or two of business bank statements, a list of every regular payment going out (including any subscriptions the company has stopped noticing), and the latest statement from each business credit account — loans, business credit cards, overdrafts, supplier accounts, anything that has a balance. Business Debtline publishes free budgeting tools for businesses, or it works just as well on a single sheet of paper.

2. The two numbers that matter most

Two figures tell you most of what you need to know:

• The company’s essential monthly outgoings — premises rent, business rates, utilities, payroll, stock, transport, basic minimum payments on credit. Not what it usually spends; what it has to spend.
• The company’s reliable monthly income — what comes in even in a quiet month.

If the first is bigger than the second, that is the position to address — usually by looking at both sides at once (essentials you might cut, income you might add). It is not unusual; it is fixable.

3. Talk to creditors early

If a loan is part of what is making things tight, please talk to whoever holds it before the position becomes urgent. For Credicorp customers, the struggling-to-pay article sets out the options — a payment arrangement, a hardship variation, or a short extension — and the Forms & Requests page has the form for each. We would much rather hear from you in January than chase a missed payment in February.

4. Free advice if it is not adding up

If the numbers do not balance, free, independent advice is available and you do not need our permission to use it. Our article on free debt advice in the UK lists the main providers, all of whom can talk through your full position — not just your Credicorp loan — and recommend the right next step.

5. Look at the year as a whole

Most business budgets have one or two months a year that are heavier than the rest — a VAT quarter, an annual insurance renewal, a corporation-tax bill, a seasonal stock build. Setting a little aside each month for those is one of the most effective things you can do, even if the amount feels too small to bother with.

Whatever the year brings, please do not let it become urgent before you tell us. We are always easier to deal with early.