Cashflow trouble rarely arrives without warning. Most limited companies and LLPs see a cluster of small signals weeks or even months before a real crisis — and catching them early means you have far more tools at your disposal.
Common early signals
- You are paying suppliers later each month — if you routinely stretch 30-day terms to 45 or 60 days, that gap is telling you something.
- Your current account dips to near-zero before invoices clear — a shrinking buffer is one of the clearest early signs.
- You are drawing on an overdraft for day-to-day costs — not occasional use, but regular reliance on it to cover wages or stock.
- Sales are growing but cash is not keeping pace — fast growth can hide cashflow gaps because money goes out before it comes back in.
- A single large customer makes up most of your receivables — concentration risk means one slow payment can stall the whole business.
Why cashflow matters more than profit
A business can be profitable on paper and still run out of cash. Profit sits in your accounts; cash is what pays wages on Friday. Watching your cashflow position weekly — not just at month end — gives a realistic picture of where the company stands.
What to do if you recognise these signs
Act early. The sooner you move, the more options remain open. Review your aged debtors list and chase overdue invoices. Look at large outgoings that could be timed differently. Speak to your accountant if you have one, or contact a free business advisory service such as the British Business Bank's Business Support Helpline.
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: What to do when you cannot pay a supplier, The difference between insolvency and a cashflow gap.