A cashflow problem that is caught early rarely has only one solution. Most limited companies in difficulty have several levers they can pull before the situation becomes a formal insolvency matter — the key is acting before options close off.
Accelerate cash coming in
- Chase overdue invoices immediately — a polite but firm call often releases payments that have simply been overlooked.
- Offer early-payment discounts — some customers will pay within 7 days in exchange for a 1–2% reduction; the cost is often worth the certainty.
- Review your payment terms — switching new contracts to 14-day terms rather than 30 improves the baseline going forward.
Manage cash going out
- Prioritise payments — wages, HMRC obligations, and rent typically take priority over discretionary or deferrable costs.
- Ask for extended terms from suppliers — many will agree if you ask before you default rather than after.
- Review subscriptions and standing orders — companies in difficulty often find unused licences, auto-renewals, or services that can be paused without impact.
Short-term financing options
If a timing mismatch is the core problem, bridging it with finance may be the most straightforward route. A revolving credit facility lets a company draw what it needs and repay as cash comes in, rather than taking a lump sum. For a single large bill, a buy-now-pay-over-instalments product can spread the cost without committing to long-term borrowing. The right option depends on the nature of the gap and the company's trading profile.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Early warning signs your cashflow is under pressure, Where to get free business debt advice.