Deal with priority debts

This section gives information about common business priority debts. It is important to look at a client’s individual circumstances when deciding how to classify their business debts. In some cases, a debt that is usually considered a non-priority debt may be essential to the running of a business. For example, if an unsecured overdraft is used as cash flow for a business and there is no alternative credit available, the overdraft facility may need to be treated as a priority. Seek specialist advice if you are uncertain how to classify a business debt.