Nothing dramatic. No Hollywood collapse.
Just the usual small business cocktail of slower economy, rising costs, a few rough months, and a business credit card that had become far too comfortable hanging around.
They were making repayments. They were doing the right thing. But the balance barely moved.
Why?
Interest.
The repayments were going in, then interest was coming along behind them with a little wheelbarrow and taking most of it back out again.
Very helpful. Very finance industry.
The client was trying to get the business back on track, but the credit card debt was making that harder than it needed to be.
Every month, cash was going toward the card, but the actual debt was not reducing in any meaningful way.
That meant less money available for the things that could actually help the business recover, like wages, suppliers, stock, pricing changes, and getting operations steady again.
In one of our regular catch-ups, we flagged something simple:
“Have you spoken to the credit card provider about hardship support?”
Not because the business was finished. Not because anyone needed to panic and start selling office chairs.
Because sometimes, asking gives you more options.
We suggested they call the provider, explain the situation, and ask whether they would consider putting a temporary hold on interest and repayments while the business got through the rough patch.
They made the call.
And the provider came to the party.
The result was a three-month pause on interest and repayments.
That gave the client breathing room at exactly the right time. Instead of throwing cash at a debt that was barely moving, they could use that money to stabilise the business and focus on getting back in control.
Business owners often assume high-interest debt just has to be endured.
It doesn’t always.
If you have business debt that is eating cash but not reducing, it may be worth asking your lender or credit provider about hardship support, interest relief, or a temporary repayment pause.
It’s not a magic wand. Sadly, those remain in short supply.
But it can be a circuit breaker.
Disclaimer: This article is here to give you general info only, not professional advice specific to your unique situation. While efforts are made to ensure accuracy, the content may change over time. We can’t take responsibility for any decisions based on the contents of this article, so be sure to chat with your accountant or advisor first!
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