Turnarounds fail in predictable ways. Learning the common mistakes is the cheapest way to avoid them.
Acting too late
The single most common error is delay — hoping things improve until the easy options are gone. Early action, on costs, cash and creditors, is what saves companies. Waiting rarely does.
Cutting the wrong things
Slashing the capacity to earn — key people, essential kit, marketing that works — to save cash can hollow out the very recovery you are fighting for. Cut waste, protect muscle.
Going it alone and going silent
Trying to handle everything without advice, and cutting contact with creditors, both make outcomes worse. Bring in help early and keep every creditor — including us — informed.
Avoiding these three errors dramatically improves the odds of a recovery.
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: Building a realistic turnaround plan on one page, The real cost of ignoring a cash-flow problem, How to cut costs without cutting capacity.