A guide, not advice. This explains how things generally work. A licensed insolvency practitioner will tell you what applies to your company or to you.
Solving business cash flow problems
Cash flow problems come in two species that look identical at the bank: timing problems, which the fixes below genuinely solve, and profit problems wearing a timing disguise - which they only postpone.
The diagnostic first
Build a 13-week cash flow forecast - crude is fine, honest is essential; if the business is profitable and the forecast shows the gap closing, fix the timing; if every week ends lower, you have a viability question, and the fixes below become borrowed time.
The timing fixes that work
Debtor discipline - invoice immediately, chase systematically, tighten terms for new work; most SMEs fund their customers more generously than any bank would.
Cost surgery - the restructuring basics: premises, subscriptions, headcount matched to realistic volumes.
Scheduling the outflows - supplier arrangements negotiated early, HMRC Time to Pay for tax humps, and even-handed part-payments rather than lurching between creditors.
Finance where it fits - invoice finance against a solid debtor book, asset refinance against unencumbered kit - noting that borrowing into a profit problem deepens it.
The line to respect
Funding losses with creditors' money - unpaid VAT, stretched suppliers, customer deposits - is where cash management crosses into wrongful trading; the forecast tells you which side you're on, and advice is free before the line, expensive after it.
Call our licensed insolvency practitioners in Manchester on 0333 023 5090 - free, confidential, and directly with an ICAEW-licensed IP.
InsolvencySupport.co.uk is operated by Xeinadin Corporate Recovery Limited (company no. 11415156), 8th Floor, 100 Barbirolli Square, Manchester M2 3BD. Our insolvency practitioners are licensed and regulated by the ICAEW.
This page is intended for general information purposes only and does not constitute financial, legal, or professional advice. Always take advice from a licensed insolvency practitioner about your specific position.