Learn: financial difficulty

Telling a viable business from an unviable one

The hardest question in a serious difficulty is whether the business is worth saving. Answering it honestly is a kindness to yourself and everyone who depends on the company.

Is there a profitable core?

Strip away the loss-making parts. Is there a core of products, customers or services that makes money and could stand on its own? A viable core can be rebuilt around; its absence is a hard signal.

Can it fund a realistic recovery?

Viability means a credible, evidenced path to positive cash flow within a sensible time — not a hope. If every plan depends on optimistic assumptions, be honest that the business may not be viable in its current form.

Take advice at this point

This is exactly when a turnaround adviser or licensed insolvency practitioner earns their keep. Objective input helps you see past hope and sunk cost to the real position.

An honest viability judgement points you to the right next step, whatever it is.

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: When to keep trading, and when to stop, Rescue options that avoid formal insolvency, Understanding business insolvency options.

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