Learn: financial difficulty

Keeping good records through a difficult period

When a company is under pressure, good record-keeping feels like the last thing you have time for. In fact it is one of the most protective habits a director can keep.

Record decisions and reasons

Keep a simple note of the key decisions you take, the information you based them on and why. If your conduct is ever questioned, contemporaneous notes showing responsible judgement are invaluable.

Keep communications

Save the emails and letters that confirm arrangements with creditors, HMRC and lenders, including us. A written record prevents disputes later about what was agreed.

Keep the numbers current

Maintain up-to-date accounts and a rolling cash-flow forecast. Accurate figures underpin every good decision and every credible proposal to a creditor.

Good records also make any arrangement with us quicker to agree and easier to keep.

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: Directors' duties when a company is struggling, Building a thirteen-week cashflow forecast, A director's legal duties when money is tight.

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