This study utilizes the government debt clearance as a quasi-natural experiment and selects data from A-share private listed companies from 2009 to 2023 to examine the impact on private enterprises’ commercial credit financing using the Difference-in-Differences model. The results show that clearing government debts can significantly reduce the commercial credit financing of private enterprises, thereby repaying the funds previously withheld from suppliers. The underlying mechanism lies in the fact that government debt clearance reduces the demand for commercial credit financing from private enterprises by increasing cash flow levels, enhancing inventory liquidity, and alleviating financing constraints. In contexts characterized by greater development capability of enterprises, higher supplier concentration, and a lower level of regional legalization, the effect of government debt clearance on reducing commercial credit financing for private enterprises is more pronounced.