Learn: financial difficulty

Running a struggling company is not just a commercial challenge; it carries legal duties that sharpen as the finances worsen. Knowing them protects both the company and you.

The duty shifts towards creditors

Normally directors act in the interests of the company and its members. As insolvency looms, that duty increasingly requires you to have regard to creditors' interests — to avoid worsening their position.

Avoid wrongful trading

Continuing to run up debts when you knew, or should have known, there was no reasonable prospect of avoiding insolvency can expose a director to personal liability. Keep records of your decisions and the reasons for them.

Take advice at the right moment

The safest course when insolvency is a real risk is to take professional advice promptly. It is not an admission of failure; it is exactly what a responsible director does, and it protects you personally.

Free services and a licensed insolvency practitioner can explain your duties in your specific situation.

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, Director duties when a company is in financial difficulty, Is my company insolvent, or just short of cash?.

Open this answer →

Dealing with difficulty is harder when the language is unfamiliar. This is a quick plain-English guide to the terms you are most likely to meet, each linked to a fuller explanation.

Being behind and what follows

Getting help

The serious end

Follow the links to the fuller definitions, and take advice if the serious terms apply.

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: Forbearance, defined, Arrears, defined, Insolvency, defined.

Open this answer →

Administration is a formal insolvency process designed to rescue a company as a going concern, or to get a better result for creditors than an immediate winding-up would.

A protective moratorium

Once a company is in administration, an administrator takes control and a moratorium generally stops creditors taking action while a plan is worked out. The aim is breathing space to rescue or realise value in an orderly way.

How borrowing is treated

Existing debts, including a business loan, become claims dealt with by the administrator under the statutory order of priority. Lenders cannot simply pursue the company outside the process during the moratorium.

Consider it before it is forced

Administration is a serious step, but considering it early — with proper advice — can sometimes preserve more of the business than waiting until the position is hopeless. It is one tool among several.

See the wider menu of insolvency options in the guide below.

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: If a company is wound up or goes into administration, Understanding business insolvency options, What if my business is insolvent or considering administration?.

Open this answer →

When the immediate pressure eases, it is tempting to exhale and carry on exactly as before. The companies that emerge stronger use the moment differently: they turn what they learned under pressure into a deliberate plan, so the next shock finds them better prepared.

What a good recovery plan covers

• The cause: an honest look at what actually drove the difficulty, not just the symptoms.
• The reserve: a target buffer of cash to rebuild, and how you will fund it month by month.
• The numbers you watch: a short set of indicators reviewed regularly so warning signs surface early.
• The commitments: a realistic schedule for clearing what built up, in a sensible order.

Pace the recovery

Rebuilding too aggressively can recreate the strain you just escaped. Set a pace the business can sustain, protect the reserve as you grow, and keep the habits, such as a rolling cashflow forecast, that helped you through. Recovery is a phase to manage, not a finish line to sprint for.

If clearing arrears or rebuilding around a Credicorp Flex or Credicorp Slice facility is part of your plan, involve us in it. A repayment schedule that fits your recovery, agreed openly, is far more likely to succeed than one that pushes the business back toward the pressure it just survived.

See also: How do I spot the early warning signs of cashflow trouble?, How can a seasonal business manage the quiet months?, Building a thirteen-week cashflow forecast.

Open this answer →

Directors sometimes think a recovery needs a thick strategy document. It does not. One clear page, kept honest, does more than fifty that gather dust.

Cause

Write down, plainly, what went wrong — a lost contract, a bad debt, rising costs, over-trading. You cannot fix a problem you have not named.

Cuts and cash

List the costs you will cut and by when, and the cash actions you will take: chase debtors, renegotiate terms, pause non-essential spend. Put numbers and dates against each.

Checkpoints

Set weekly checkpoints to compare plan against reality, using a rolling cash-flow forecast. Adjust as you learn. A plan you actually review beats a perfect one you file away.

Share the plan with creditors — including us — to support an arrangement.

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 recovery plan after a difficult period, Building a thirteen-week cashflow forecast, Restructuring costs to protect your business.

Open this answer →

When a business is comfortable, an annual budget is enough. When money is tight, you need to see the next quarter week by week. A thirteen-week cashflow forecast shows exactly when cash comes in, when it goes out, and which weeks will be tight enough to need a plan.

How to set it up

• List thirteen columns, one per week, starting from your current bank balance.
• Enter expected receipts by the week you genuinely expect the money to clear, not the invoice date.
• Enter every outgoing: payroll, rent, suppliers, VAT, PAYE, loan repayments and direct debits.
• Carry the closing balance of each week into the opening balance of the next.

Using it well

The value is in the discipline of updating it every week with what actually happened, then rolling a new week onto the end. Over a month you learn how reliable your own estimates are, which makes the forecast more trustworthy precisely when you need to lean on it.

Where you can see a Credicorp Flex or Credicorp Slice repayment landing in a low-balance week, you have time to act. You might bring forward a customer payment, agree a short supplier extension, or contact us about your options before the date arrives. A forecast turns a future shock into a decision you make calmly today.

Keep it simple. A spreadsheet you actually maintain beats sophisticated software you abandon after a fortnight.

See also: How do I spot the early warning signs of cashflow trouble?, Cashflow forecasting basics for limited companies, How do we avoid making difficulty worse with quick-fix borrowing?.

Open this answer →

Recovering from difficulty is survival; building resilience is winning. The habits that make a company shock-proof are simple, and they are what turn a hard lesson into a lasting advantage.

Cash buffer and diversified income

A reserve covering a few months of essentials, and revenue spread across several customers rather than resting on one, are the two structural defences that matter most. Build both deliberately.

Tight financial control

Prompt invoicing, consistent chasing, a rolling forecast and a real grip on margins mean you see trouble early and act while it is cheap to fix. Control is what keeps small problems small.

Borrow only where it builds

Use finance for genuine growth or genuine timing gaps, on terms you can afford from real cash flow — never to plug a structural hole. Disciplined borrowing strengthens a company; reckless borrowing is how many fall into difficulty.

A resilient business is the best possible outcome of a difficult period.

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: Rebuilding a cash buffer after a difficult year, Learning the lessons once the crisis has passed, Using short-term finance responsibly in a squeeze.

Open this answer →

Construction is notorious for lumpy cash flow: costs go out early, money comes in late, and retentions sit unpaid for months. Understanding the pattern is half the battle.

Where the squeeze comes from

You pay for labour and materials up front, invoice in stages, and often wait 30–60 days or more to be paid — with a slice held as retention beyond that. A single delayed valuation can leave a solid firm short of cash.

Managing the pattern

Forecast around the real payment cycle, not the contract value. Agree stage payments and shorter terms where you can, chase valuations promptly, and keep a buffer for the gaps. Watch retentions closely — they are your money.

When a bridge helps

A short-term facility can bridge a genuine timing gap between costs and a confirmed stage payment. The test, as always, is that the money is really coming.

See sector funding at Credicorp for construction, and use a forecast to stay ahead.

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: How short-term finance can bridge a temporary cashflow gap, Chasing late-paying customers to ease cashflow, Building a thirteen-week cashflow forecast.

Open this answer →

Hospitality and retail businesses feel every quiet week immediately. Stock ties up cash, footfall swings with the season and the weather, and margins are often thin. That combination can turn a slow month into a scramble.

Where the squeeze comes from

Cash goes into stock and staff before customers arrive, and a poor season or a sudden dip in footfall leaves you holding costs without the sales to cover them. Perishable stock adds urgency.

Managing the pattern

Match stock to realistic demand, watch your gross margin closely, and build a buffer in strong months to carry the weak ones. Renegotiate supplier terms so your outgoings track your income more closely.

When a bridge helps

A short facility can smooth a genuine seasonal dip or fund stock for a known busy period. Plan it in advance so it works with your calendar, not against it.

See sector funding at Credicorp for hospitality, and plan the quiet months ahead.

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: Seasonal businesses: managing the quiet months, A quiet season has left me short for a few months, How to build a simple cash-flow forecast to stay ahead.

Open this answer →

A county court claim landing on the mat is alarming, but it is not the end of the road. What you do next — engage or ignore — makes all the difference.

Do not ignore it

A claim has deadlines. Ignoring it can lead to a judgment being entered against the company by default, which is far harder to deal with than the original claim. Read it carefully and note the dates.

Respond within the time limit

You can admit the debt and propose to pay, dispute it if you genuinely disagree, or negotiate a settlement. Even at this stage, an agreed payment plan often resolves matters. Take advice if you are unsure how to respond.

Keep talking to the creditor

A court claim does not stop you agreeing terms directly with the creditor. Many are settled by arrangement even after a claim is issued. The same is true of any debt with us — talk to us.

Free advice on court claims is available — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

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: How to talk to creditors when your business is struggling, What recovery steps can we take, and in what order?, Where to get free business debt advice.

Open this answer →

You never have to pay for good debt advice. Several respected UK services offer free, confidential help to businesses and the self-employed, and using them early makes a real difference.

Business Debtline

Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026. They can help you build a budget, prioritise debts and draft proposals to creditors.

Other free help

Citizens Advice offers general guidance, and specialist charities support those under acute money stress. For tax specifically, HMRC's Business Payment Support Service on 0300 200 3835 can discuss Time to Pay.

Why free advice is worth it

Free advisers are independent, so their only interest is your best outcome. They can often negotiate with creditors on your behalf and open options you did not know existed.

Taking free advice sits well alongside talking to us about an arrangement.

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: Where can I get free, independent debt advice in the UK?, Free business debt advice for UK limited companies, Where to get free business debt advice.

Open this answer →

Often the cash to solve a squeeze is already yours — sitting in unpaid invoices. Getting paid faster is the cheapest funding there is, because it costs nothing but discipline.

Invoice promptly and clearly

Invoice the moment work is done, not at month end. State the due date, the amount and how to pay in plain terms. Every day an invoice is late going out is a day later it comes back.

Chase on a schedule

Have a fixed routine: a polite reminder before the due date, a firmer one just after, then a call. Consistency gets you paid; sporadic chasing trains customers to wait. Confirm promised dates by email.

Make paying easy

Offer simple payment methods and, where it helps, small incentives for early payment or clear penalties for lateness set out in your terms. The easier you make it, the sooner the cash arrives.

Faster collections often remove the need for the very borrowing that difficulty tempts you into.

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: Chasing late-paying customers to ease cashflow, What a late-paying customer means for your loan payments, How to build a simple cash-flow forecast to stay ahead.

Open this answer →

A Credicorp Business Loan carries no director personal guarantee, but many other forms of business finance do. If your company has given guarantees elsewhere, they matter in difficulty.

Know where your guarantees are

Make a list of every business debt that carries a personal guarantee — bank loans, leases, supplier accounts. These are the debts where the director's personal position is genuinely at risk, unlike your loan with us.

Deal with guaranteed debts carefully

Because a personal guarantee exposes the director, guaranteed debts deserve particular attention and often specialist advice. Do not let a difficulty with a non-guaranteed debt distract from a guaranteed one that carries personal risk.

Take advice on the whole picture

A debt adviser or insolvency practitioner can help you weigh guaranteed against non-guaranteed debts and protect your personal position appropriately.

Understanding which debts carry personal risk helps you prioritise wisely — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

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: Does a director's personal credit get touched by company arrears?, How business-loan difficulty differs from personal debt, A director's legal duties when money is tight.

Open this answer →

Bridges and fixes solve different problems. Confusing them is how companies borrow their way from a cash-flow gap into a solvency crisis.

A bridge spans a known gap

A short bridge — a payment arrangement, an extension, a short facility — carries you across a defined, temporary gap to a point where the numbers work again. It assumes there is solid ground on the far side.

A fix repairs the ground itself

If the business model no longer works — costs above prices, revenue structurally down — no bridge will help, because there is nothing solid to bridge to. That needs a fix: repricing, restructuring, reinventing.

Diagnose before you fund

Before using any finance in difficulty, be honest about whether you are bridging a gap or papering over a hole. Get advice if you are not sure — it is the most important call you will make.

For a genuine gap, talk to us about a bridge; for a hole, fix the business first.

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: How short-term finance can bridge a temporary cashflow gap, Using short-term finance responsibly in a squeeze, The difference between a cost problem and a revenue problem.

Open this answer →

Directors often carry assumptions from personal borrowing into business debt, and the two work differently. Knowing the differences prevents costly mistakes in difficulty.

The borrower is the company

A business loan is owed by the limited company, not the individual. On a Credicorp loan there is no director personal guarantee, so the difficulty and any consequences sit with the company, not the director's personal finances.

Different regime, different safety nets

Business lending sits outside the consumer-credit regime, so protections such as the Financial Ombudsman Service and FSCS do not apply. In their place sit clear contractual terms, a 100% cost cap and a responsible approach to forbearance.

Different duties

Running a struggling company carries legal duties towards creditors that have no personal-borrowing equivalent. Understanding them is part of handling business difficulty properly.

Understanding the regime helps you use the right tools and take the right advice.

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: How difficulty support differs for business borrowers versus consumers, Does a director's personal credit get touched by company arrears?, A director's legal duties when money is tight.

Open this answer →

Plenty of healthy companies earn most of their money in a few intense months and then face a long, lean stretch. The danger is not the quiet season itself; it is treating predictable seasonality as if it were an unexpected emergency. With planning, the trough becomes a managed phase rather than a crisis.

Plan the trough during the peak

• While trading is strong, set aside a reserve specifically to cover the quiet months.
• Map your fixed costs across the lean period so you know the true shortfall in advance.
• Look for off-season revenue: maintenance work, pre-bookings, or a complementary line that peaks at a different time.
• Align supplier and overhead commitments with your cash rhythm where you can.

Smooth the cash, not just the costs

Seasonal businesses often benefit from spreading commitments so the bills do not all land in the months with the least income. Build a forecast that runs across a full cycle, not just a quarter, so the shape of your year is visible.

A Credicorp Flex or Credicorp Slice facility can be part of bridging a known seasonal gap, but it works best when the repayment pattern fits your cycle. If a repayment falls in your quietest month, talk to us early so we can look at aligning it more sensibly with when your company actually earns.

See also: How do I manage a seasonal dip in trading?, Managing repayments when your business is seasonal, Building a realistic recovery plan after a difficult period.

Open this answer →

For a lot of companies in difficulty, the money to ease the pressure is already owed to them. It is just sitting in customers' accounts as unpaid invoices. Sharpening your credit control can release that cash faster than almost any cost cut, and it costs nothing to do well.

Practical steps that work

• Invoice immediately on delivery, not at the end of the month, with clear payment terms.
• Confirm the invoice was received and is approved, so nothing stalls quietly.
• Have a fixed chasing routine: a reminder before the due date, then prompt follow-ups after.
• Make it easy to pay, with clear bank details and simple payment methods.
• For larger jobs, consider deposits or staged payments so you are not funding the whole project.

Stay firm but professional

Chasing is not rude; it is the other side of doing the work. Be consistent and polite, keep a record of every contact, and escalate calmly if a customer persistently ignores agreed terms. A reputation for chasing reliably tends to move you up customers' payment queues.

If a Credicorp Flex or Credicorp Slice repayment is tight while you wait on a known, reliable receipt, contact us. Bridging a short, predictable gap is exactly the kind of situation where talking to us early can help.

See also: What to do if you can't make a payment, How do I spot the early warning signs of cashflow trouble?, How do we avoid making difficulty worse with quick-fix borrowing?.

Open this answer →

Not every cashflow problem is a sign of a failing business. Sometimes it is simply a matter of timing — money is owed to you, but it has not arrived yet, and in the meantime you have wages to pay, stock to buy, or a supplier to settle. Short-term business finance exists precisely for this situation.

When short-term finance makes sense

Short-term finance is worth considering when:

• You have confirmed, collectable receivables but they will not clear in time to meet an imminent obligation
• You have a one-off, time-sensitive cost — a bulk stock purchase, a renewal, a tax bill — that falls at an awkward point in your cash cycle
• You want to protect a key supplier relationship rather than risk damaging it by asking for extended terms

It is less appropriate as a long-term subsidy for a business that is consistently spending more than it earns. If that is the position, trading performance needs to be addressed alongside any financing.

Types of short-term facility

A revolving credit facility — such as Credicorp Flex — lets a company draw funds up to an agreed limit, repay as cash comes in, and redraw again. This suits businesses with cyclical or irregular income because you only borrow what you need and repay when you can. A fixed short-term loan provides a lump sum repaid over a defined period, which suits a one-off cost with a known repayment profile. For a single large bill, a product like Credicorp Slice spreads the cost over three or four weekly instalments at a flat fee, avoiding a large one-off impact on the current account.

What to check before borrowing

Make sure the repayment schedule aligns with when you expect cash to arrive — not just with what looks comfortable on paper. If you are uncertain whether the underlying cashflow gap is temporary or structural, take free advice first before committing to repayments.

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: The difference between insolvency and a cashflow gap, Options before a cashflow problem escalates, Using short-term finance responsibly in a squeeze.

Open this answer →

When your business is under cashflow pressure, a simple short-term forecast is worth more than any complex financial model. A 13-week (roughly three-month) cashflow forecast tells you exactly when money arrives and when it leaves — so you can see gaps coming before they become crises.

What to include

Start with a spreadsheet. Create one column per week for 13 weeks. For each week, list:

• Money in: expected customer payments (the date the cash should actually clear, not the invoice date), any loans or grants expected
• Money out: wages, rent, supplier payments, VAT, PAYE, loan repayments, insurance, subscriptions — everything with a known or estimated date
• Opening and closing balance: start with your current bank balance and run the arithmetic week by week

Be conservative on the inflows

The most common mistake is assuming customers will pay on time. Base your forecast on when you realistically expect money, not when it is contractually due. If a particular customer consistently pays 15 days late, build that in. An honest forecast that shows a gap is more useful than an optimistic one that masks it.

Use the forecast actively

A cashflow forecast is only useful if you update it each week with actuals and revise the projections. Where you see a future week going into the red, you have time to act — chase a debtor, defer a cost, or arrange bridging finance before the gap arrives. Lenders and advisers will also take you more seriously if you can show you understand your own numbers.

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, Options before a cashflow problem escalates, How to build a simple budget when cash is tight.

Open this answer →

Most business financial difficulty does not arrive overnight. It builds over weeks while the headline numbers still look acceptable. The companies that handle it best are the ones that catch the drift early, while there is still room to adjust suppliers, terms and timing rather than react under pressure.

Signals worth tracking every month

• Your closing bank balance is trending down month on month, even in a steady trading period.
• You are relying on incoming customer payments arriving exactly on time to meet your own outgoings.
• Aged debtor days are creeping up and chasing is slipping down the to-do list.
• You are paying suppliers later than agreed, or in part, to manage the week.
• VAT, PAYE or Corporation Tax set-asides are being dipped into for day-to-day costs.

What to do once you see them

Build a simple thirteen-week cashflow forecast and update it weekly. It does not need to be sophisticated, only honest. Map the weeks where money is tight before they arrive, and you can decide calmly whether that is a timing problem, a margin problem or a demand problem. Each needs a different response.

If a Credicorp Flex or Credicorp Slice repayment falls in one of those tight weeks, contact us early. We would always rather talk before a payment is missed than after. Acting in advance keeps far more options on the table for your company.

See also: Building a thirteen-week cashflow forecast, What is an HMRC Time to Pay arrangement, and when should we ask for one?, How do we avoid making difficulty worse with quick-fix borrowing?.

Open this answer →

Talking to creditors when things are difficult is daunting, but it is also one of the most effective things a director can do. Creditors — whether suppliers, lenders, or HMRC — generally prefer to agree a manageable repayment plan over pursuing enforcement action.

Prepare before you call

Before you contact any creditor, put together a clear picture of the company's position:

• What you owe in total, and to whom
• What cash you have available now
• What cash you expect to receive over the next 30, 60, and 90 days
• A realistic proposal — a revised payment date, a reduced monthly sum, or a short payment holiday

You do not need a polished document. A simple spreadsheet or even a clear set of notes is enough to hold a productive conversation.

What to say

Be direct and factual. Explain that the company has a cashflow difficulty, that you are managing it actively, and that you want to honour the debt. Propose something specific rather than asking what they want. Creditors respond better to a director who has a plan than one who is simply apologising. Confirm any agreement by email immediately after the call.

HMRC Time to Pay

HMRC has a dedicated service for businesses that cannot pay a tax bill on time, called Time to Pay. You can request a payment arrangement for PAYE, VAT, Corporation Tax, and Self Assessment. Call the HMRC Business Payment Support Service on 0300 200 3835 before your payment deadline if at all possible — it is much harder to negotiate after enforcement action has started.

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, Where to get free business debt advice, How do I build a simple cashflow forecast when my business is under financial pressure?.

Open this answer →

When a company is under pressure, offers of fast, easy money can be tempting. The trouble is that the quickest funding is often the most expensive, and borrowing to plug a hole you cannot yet see the bottom of can deepen difficulty rather than resolve it. A few questions help you judge well.

Questions to ask before taking on new finance

• Is this a timing problem that new funding genuinely bridges, or a deeper margin or demand problem that borrowing only delays?
• Can the company realistically meet the repayments out of expected cashflow, not best-case hopes?
• What is the true cost over the full term, including every fee, not just the headline?
• Who is the lender, and are their terms clear and fair?

Borrow into a plan, not a panic

Healthy borrowing supports a credible plan with a clear repayment route. Panic borrowing fills a gap today and creates a bigger one later. If you cannot see how the money will be repaid, that is a signal to take advice before signing anything.

If you already hold a Credicorp Flex or Credicorp Slice facility and are tempted to stack expensive new debt on top to keep up with it, pause and talk to us first. Restructuring what you have with us may be far healthier than adding a costly second commitment in a difficult month.

See also: Matching the borrowing to the need it funds, What not to do when your company cannot pay, How can a seasonal business manage the quiet months?.

Open this answer →

If your company hits a week where it cannot pay every creditor in full, the worst response is to pay whoever shouts loudest. A calm, defensible order protects the business and treats creditors fairly. This is general information, not legal or insolvency advice, and a licensed insolvency practitioner should be involved if the company may be unable to pay its debts.

A sensible order of priorities

• Costs that keep you trading: payroll, critical suppliers, rent and the utilities your operation cannot run without.
• Statutory obligations: VAT, PAYE and Corporation Tax. HMRC has strong collection powers and prefers early contact.
• Secured and finance commitments: anything tied to an asset you need, and agreed loan repayments.
• Other trade creditors: negotiated where possible into a realistic timetable.

Talk before you skip

For almost every creditor, a phone call to agree a short revised plan is better than silence followed by a missed payment. Most will work with a company that engages early and proposes something credible.

That includes us. If a Credicorp Flex or Credicorp Slice repayment cannot be met in full, contact us before the due date so we can look at your hardship and forbearance options. Engaging early almost always leaves you with more room than going quiet and hoping.

See also: What is an HMRC Time to Pay arrangement, and when should we ask for one?, A director's loan to your own company: tax and legal points and Applying as a newly incorporated company.

Open this answer →

Banks are far more helpful to a business that comes to them early with a plan than to one that hits a limit unannounced. A prepared approach makes all the difference.

Go early, not at the limit

Speak to your bank before you are pressed against an overdraft or a covenant, not after. Early contact signals control and gives the bank room to help rather than react.

Bring a plan and numbers

Turn up with a short cash-flow forecast and a clear ask — a temporary facility, revised terms, a bridge to a confirmed payment. Specifics backed by figures earn a better hearing than a vague request for help.

Be honest about the position

Overstating the picture rarely survives scrutiny and damages trust. An honest account of the difficulty and a credible plan to trade through it is what banks respond to.

The same preparation works when approaching any lender, including us.

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 your overdraft is withdrawn, How to write to a creditor proposing a payment plan, Building a thirteen-week cashflow forecast.

Open this answer →

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.

Open this answer →

You cannot steer a company through difficulty without knowing where the money goes. A simple budget, built fast, is the map.

List income and outgoings

Write down the money coming in and, separately, everything going out, grouped into essential and non-essential. Do not aim for perfection; aim for a picture accurate enough to act on.

Find the surplus or the gap

Subtract outgoings from income. A surplus tells you what is available for debts and buffer-building; a gap tells you exactly how much you need to close through cuts, faster collections or an arrangement.

Update it as reality lands

A budget is a living tool in difficulty. Revisit it weekly against what actually happened, and adjust. An honest, updated budget beats a polished one that is out of date.

A clear budget makes every creditor conversation, including with us, far more productive.

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: How to build a simple cash-flow forecast to stay ahead, Building a thirteen-week cashflow forecast, How to prioritise which bills to pay first.

Open this answer →

Cutting costs is often necessary, but done blindly it can remove the very capacity you need to recover. The skill is separating fat from muscle.

Start with non-productive spend

Subscriptions you do not use, duplicated tools, discretionary travel and marketing with no measurable return are usually the safest first cuts. They reduce outgoings without touching your ability to deliver.

Renegotiate before you remove

Before cancelling anything essential, ask for better terms — suppliers, landlords and service providers will often flex to keep you. A renegotiated cost keeps capacity while easing cash flow.

Protect revenue-generating capacity

Be very careful cutting the people, kit or stock that directly produce income. Saving a little now by hollowing out capacity can cost far more when the recovery you are fighting for finally arrives.

A leaner cost base also makes any loan arrangement easier to sustain.

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: Restructuring costs to protect your business, Building a recovery plan after a difficult period, Talking to suppliers about payment terms.

Open this answer →

When a quarter looks difficult, a focused forecast covering exactly that period gives you the control a vague worry never can.

Map the quarter week by week

Lay out the next 13 weeks: cash in, cash out, and the running balance. The low points jump off the page, and you can see precisely which weeks need action and how much.

Attack the low points

For each pinch point, decide the action — chase a debtor, move a payment, arrange a bridge, cut a cost — with enough lead time to make it happen. A forecast is only useful if it drives decisions.

Update weekly

Replace estimates with actuals each week and roll the forecast forward. The picture sharpens as you go, and you stay ahead of the next low point rather than reacting to it.

Use the forecast to time any conversation with us, ideally before a payment is at risk.

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 thirteen-week cashflow forecast, Why a rolling forecast beats a static budget in difficulty, How to build a simple budget when cash is tight.

Open this answer →

Knowing when you are genuinely through the worst is as important as spotting trouble in the first place. Read the signs right and you can step back to normal at the right moment, not too early or too late.

The forecast stops getting worse

The first sign is your rolling forecast levelling off and then improving week on week, with the low points shallower than they were. Sustained, not one-off, improvement is what counts.

Cash and debtors recover

A rebuilding cash buffer and debtors paying closer to terms are concrete signals that the underlying position is healing, not just a good week.

Act on real recovery

When the signs are consistent, you can increase payments, clear arrears faster, or ease off emergency cost measures. Tell us if you can pay more — it clears the balance sooner and cuts the interest.

If recovery is real, talk to us about stepping payments back up.

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 if my circumstances improve during an arrangement?, What a good outcome looks like after difficulty, Rebuilding a cash buffer after a difficult year.

Open this answer →

When several demands land at once, the loudest is not always the most important. A calm triage protects the company far better than reacting to whoever shouts.

Rank by consequence

Ask what genuinely happens if each debt goes unpaid for a short while. Wages, tax, premises and essential suppliers carry the sharpest consequences, so they rank highest — regardless of who is chasing hardest.

Buy time on the rest

For lower-consequence debts, a short call proposing a plan usually buys the time you need. Creditors, including us, generally prefer an early, specific proposal to silence.

Do not let volume drive you

A supplier sending three emails a day is not necessarily more important than a quiet tax deadline. Judge by impact, not by noise.

Free advisers can help you triage — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

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: How to prioritise which bills to pay first, Which debts should a struggling company pay first?, The first seven days of a cash-flow crisis.

Open this answer →

By the time a payment is missed, the warning signs have usually been flashing for weeks. Directors who learn to read them act early, when help is cheapest and options are widest.

Watch the buffer and the debtor days

A cash reserve that keeps shrinking, and customers taking longer and longer to pay, are two of the clearest signals. Track both. A rising debtor-day figure is often the first hint of trouble to come.

Notice your own behaviour

Leaning on the overdraft every month, delaying supplier payments, or feeling anxious opening the bank app are behavioural warning signs worth heeding. They usually precede the numbers turning bad.

Act on the signal, not the crisis

The whole point of an early warning is to act before the crisis. A quiet conversation with a creditor now, or a small cost cut, is far easier than an arrangement made under a deadline.

If the signals are flashing, talk to us early — it keeps every option open.

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: Spotting early warning signs of cashflow trouble, Early warning signs your business cashflow is under pressure, Warning signs your company may be heading for payment trouble.

Open this answer →

A difficult period can strain supplier relationships you rely on. As you recover, rebuilding that trust is worth real effort.

Catch up and communicate

Clear what you owe on the plan you agreed, and keep suppliers informed as you do. Reliability rebuilt over a few months does more to restore trust than any apology.

Return to prompt payment

Once recovered, pay on time — or early where you can. Becoming a dependable payer again is the clearest signal that the difficulty is behind you.

Value the ones who stood by you

Suppliers who showed flexibility in a hard time are worth loyalty. Recognising that strengthens relationships that will matter next time conditions turn.

Restored supplier trust is part of the resilience you build after difficulty.

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: Talking to suppliers about payment terms, Renegotiating supplier terms when cash is tight, Building financial resilience so difficulty does not recur.

Open this answer →

A struggling company depends on its people more than ever, yet they are often the last to be told what is going on. Handling the team well is part of the recovery.

Communicate honestly, without alarm

Tell staff enough to be respected and trusted, without dumping every worry on them. People generally cope better with honest information than with a vacuum they fill with rumour.

Involve them in solutions

Front-line staff often see savings and improvements management misses. Inviting practical ideas both helps the business and gives the team a sense of agency in a hard time.

Look after wellbeing

Money worries — the company's and their own — weigh on people. Signposting support and keeping the atmosphere calm protects both morale and the productivity you are relying on.

A steady, well-led team is one of your biggest assets in a turnaround.

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: Managing the stress of running a struggling business, What happens to employees if a company cannot pay?, Building a recovery plan after a difficult period.

Open this answer →

When you approach a creditor in writing, structure and specifics matter. A clear proposal shows you have a grip and makes a yes far more likely.

State the position plainly

Open with the facts: who you are, the account or debt in question, and a brief, honest explanation of the difficulty. No excuses, no drama — just the situation.

Make a specific, realistic offer

Propose an exact plan: how much you can pay, how often, and from when. An offer grounded in a genuine cash-flow forecast is credible; a vague request for time is not.

Confirm and follow up

Ask for written confirmation of any agreement, keep a copy, and stick to it. If circumstances change, write again promptly rather than simply missing a payment.

The same approach works with us — set out a realistic plan and we will work with it.

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: How to talk to creditors when your business is struggling, How to prepare before you call us about payment trouble, A one-page checklist before you contact us about arrears.

Open this answer →

Not every company that cannot make a payment this week is insolvent. Confusing a temporary cash-flow gap with genuine insolvency leads to bad decisions in both directions.

The cash-flow test

A company is cash-flow insolvent if it cannot pay its debts as they fall due. A one-off timing gap, where the money is genuinely coming, is not the same as a sustained inability to meet obligations.

The balance-sheet test

A company is balance-sheet insolvent if its liabilities exceed its assets. A business can be short of cash this month yet solvent overall, or the reverse — which is why you look at both tests, not one.

Why the distinction matters

If it is a gap, forbearance and short-term measures fix it. If it is genuine insolvency, directors have specific legal duties and should take advice quickly. Getting the diagnosis wrong wastes time you may not have.

If you are unsure, take advice early — a licensed insolvency practitioner or free service can help.

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: The difference between insolvency and a cash-flow gap, Understanding business insolvency options, Directors' duties when a company is struggling.

Open this answer →

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.

Open this answer →

Agreeing arrangements is not the end of the conversation. A light, regular rhythm of updates through the recovery keeps creditors confident and your options open.

Update, do not disappear

The worst thing after agreeing a plan is to go quiet. A brief update — even just confirming you are on track — keeps creditors reassured and makes them far more flexible if you do need to adjust.

Flag changes early

If trade improves, offer to pay more; if it dips, ask to revise before you miss a payment. Early, honest signals protect the trust an arrangement is built on.

Keep it simple

A short email at sensible intervals is enough. You are not writing a report; you are keeping a relationship warm so it works when you need it.

The same applies with us — keep us posted and we will keep working with you.

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: Will you keep contacting me once an arrangement is agreed?, What if my circumstances improve during an arrangement?, How to write to a creditor proposing a payment plan.

Open this answer →

You cannot fix a company's finances if the business itself falls over in the meantime. Keeping the lights on and the customers served is part of the turnaround, not separate from it.

Protect the core operations

Identify the handful of things the business must keep doing to serve customers and earn — key staff, essential suppliers, critical kit — and protect them fiercely while you restructure around the edges.

Keep customers confident

Customers who sense a wobble may leave, deepening the problem. Deliver reliably, communicate normally, and avoid signalling distress. Steady service buys you the time the finances need.

Sequence the changes

Make financial changes in an order that does not disrupt trading — renegotiate before you cut, plan cover before you lose people. A turnaround that breaks the business it is trying to save has failed.

Stabilising operations gives any financial arrangement, including with us, a base to work from.

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, How to cut costs without cutting capacity, How to support staff through a tough trading patch.

Open this answer →

Surviving a crisis is an achievement; learning from it is what stops the next one. A short, honest review once the pressure lifts pays for itself many times over.

What caused it, really

Look past the trigger to the underlying cause. A late payment may have been the spark, but thin buffers, weak credit control or over-reliance on one client were often the fuel. Fix the fuel, not just the spark.

What worked in the response

Note what actually helped — early contact with creditors, a rolling forecast, cost cuts, an arrangement — and make those permanent habits rather than crisis-only measures.

Build the defences

Set up the things that make the next shock survivable: a cash buffer, diversified customers, tight collections, and a habit of forecasting. Difficulty, handled well, leaves a stronger business behind.

The strongest defence of all is a company that has learned to see trouble coming.

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 recovery plan after a difficult period, Rebuilding a cash buffer after a difficult year, How to read your own early-warning signs.

Open this answer →

Financial difficulty is not only a business problem; it weighs heavily on the people carrying it. Directors and owners often absorb the worry quietly while keeping a brave face for staff and customers. That pressure can cloud judgement at exactly the moment clear thinking matters most, so your wellbeing deserves attention as much as the numbers do.

Things that genuinely help

• Talk to someone you trust, whether a peer, a mentor, or your accountant, so you are not carrying it alone.
• Separate the decisions you can take this week from the ones that can wait, to reduce overwhelm.
• Protect basic routines: sleep, breaks and time away from the inbox sharpen your decisions.
• Remember that financial difficulty is common and rarely a verdict on you as a person.

Reach out if it gets heavy

If the strain is affecting your health, please speak to your GP or a support service. Organisations such as the Samaritans are there at any hour. There is no weakness in asking for help; it is what resilient people do.

On the financial side, do not let worry stop you from contacting us about a Credicorp Flex or Credicorp Slice repayment. Many people find that simply having the conversation lifts a weight, because uncertainty is often heavier than the facts. We would rather hear from you early than have you sit with it alone.

See also: Looking after yourself while handling business money stress, How Credicorp treats businesses in financial difficulty, Where can my company get free, independent business debt advice?.

Open this answer →

If something has gone wrong, or you are unhappy with how we have handled your company's loan, we want to hear about it. A complaint is not a nuisance to us; it is how we put things right for you and improve for everyone else. We will look into what you raise fairly, take it seriously, and keep you informed along the way.

Here is how to complain, the stages your complaint goes through, and what your options are if you are still not satisfied at the end.

How to complain

You can raise a complaint in whatever way is easiest for you. The most direct route is our Make a Complaint form, which sends it straight to the right team. It helps if you can tell us what happened, when, how it has affected you or your company, and what you would like us to do to put it right. If you need to complain in a particular format, or need extra support to do so, just let us know and we will make that work.

The stages we follow

Our process is designed to be clear and reasonably quick:

1. We acknowledge your complaint so you know it has reached the right team and is being looked into.
2. We investigate, reviewing what happened, listening to any call recordings where relevant, and checking your complaint against your Business Loan Agreement and our records.
3. We respond. Where we can resolve things quickly, we will. Where it needs more time, we will keep you updated on progress and tell you when to expect an answer.

You can read more about what to expect in what FOS and FSCS cover, which also explains the escalation point below.

Our final response

When our investigation is complete, we will send you a final response. This sets out what we found, our decision, and our reasons, in plain language. If we got something wrong, we will say so and explain how we will fix it. If we do not uphold your complaint, we will explain why, clearly and honestly, so you understand the decision even if you do not agree with it.

If you are still not satisfied

It is important to be straight with you about this. Because we lend to companies for business purposes, this product is not covered by the Financial Ombudsman Service (FOS), and it is not covered by the Financial Services Compensation Scheme (FSCS) or the Business Banking Resolution Service. That is a feature of business lending to a body corporate, not a gap we have chosen, and it is explained further in what FOS and FSCS cover.

This means that if you remain unhappy after our final response, the final route of escalation is the courts, rather than an ombudsman. We hope it never comes to that, and the great majority of complaints are resolved well before then. We would always rather understand your concern and put it right ourselves.

Getting independent help

If your complaint sits alongside wider money worries, free and independent advice is available for your business from Business Debtline at businessdebtline.org or on 0800 197 6026. Whatever the issue, telling us is the best place to start, and we will treat your complaint with the seriousness and respect it deserves.

See also: How do we avoid making difficulty worse with quick-fix borrowing?, Building a realistic recovery plan after a difficult period, Building a thirteen-week cashflow forecast.

Open this answer →

When cash is tight, your suppliers are usually the first relationship you can ease without long-term damage, provided you handle it openly. A supplier who is told the truth and offered a realistic plan will often agree to terms they would never give to a customer who simply stops paying.

Before you call

• Know exactly what you owe, what you can pay now, and what you can commit to over the coming weeks.
• Decide what you are asking for: a short extension, a payment plan, or a temporary reduction in order size.
• Be ready to explain the cause briefly and the path back to normal.

During the conversation

Lead with what you can do, not only what you cannot. Offer a specific date and amount rather than a vague promise. Protect the suppliers you genuinely depend on, because losing a critical supplier mid-difficulty is far more costly than the cash you were trying to preserve. Put any agreement in writing afterwards so both sides remember the same terms.

The same principle applies to us

Credicorp would rather restructure a Credicorp Flex or Credicorp Slice repayment that you cannot currently meet than see it missed without warning. Treat us the way you would treat a key supplier: contact us early, be straight about the position, and propose what is realistic for your company.

See also: Our hardship and forbearance process, What is an HMRC Time to Pay arrangement, and when should we ask for one?, How should my company prioritise which bills to pay first?.

Open this answer →

When a company is finding it hard to keep up with repayments, we would much rather work with you than leave you to struggle. Here is how our hardship and forbearance process works, so you know what to expect before you get in touch. The aim is always the same: to find an arrangement that is realistic for your business and that gets the loan back on a sustainable footing.

Forbearance simply means giving a borrower room to recover, rather than pressing for payment your company genuinely cannot make. It is a normal, sensible part of lending responsibly, and asking for it is not something to feel awkward about.

Step one: tell us what has changed

Everything starts with a conversation. Contact us, ideally before a payment is missed, and tell us what has happened and how it is affecting your cash flow. We will listen, ask a few questions about your company's income and outgoings, and look at what is affordable. Honest figures help us help you, even when the picture is not rosy.

The options we can consider

Depending on your situation, we may agree one of the following:

• A payment arrangement. If the difficulty is short-term, we can spread what is owed over a period your company can manage, then return to the normal schedule.
• A short freeze. Where you need breathing space, for example while you chase a large invoice or recover from a one-off shock, we may pause payments for an agreed time.
• A hardship variation. If the difficulty is more serious or likely to last, we can vary the terms of the loan itself to make it affordable over a longer period. You can read more in what is a hardship variation?.

We will talk through which option fits, explain what it means in plain terms, and confirm the new arrangement in writing so there is no confusion.

What we will and will not do

We will treat you with respect, keep your information confidential, and be clear about every step. We will never apply a charge that is not already set out in your Business Loan Agreement. We do not invent fees, and we do not add surprise costs as a penalty for being in difficulty. If a variation changes what you will pay overall, we will show you exactly how, and the figures will always trace back to the agreement you signed and the Key Information Sheet (KIS) you received.

Because we lend to your company for business purposes and take no personal guarantee from its director, our focus is on the company's ability to recover. We will be straight with you about what is possible.

Get independent advice first if you want to

You are always welcome to take free, independent advice before or during this process, and we would encourage it. Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026. They can help you work out a budget and prioritise your debts. For the full picture of free help available, see where can I get free independent debt advice in the UK?.

What happens after an arrangement is agreed

Once we have agreed a way forward, we will put it in place and confirm the details to you. We will also pause unnecessary contact and any further collection steps while you stick to the new plan. If your circumstances change again, for better or worse, tell us, and we will review the arrangement. Plans can be adjusted; the important thing is to keep the conversation open. Reaching out early, and staying in touch, is what makes a good outcome far more likely.

See also: How do we avoid making difficulty worse with quick-fix borrowing?, Building a realistic recovery plan after a difficult period, Building a thirteen-week cashflow forecast.

Open this answer →

The strain of a struggling business lands heaviest on the person running it. Protecting your own mental health is not self-indulgence; it is essential to steering the company well.

Separate the person from the problem

A company's financial difficulty is a business problem to solve, not a verdict on you as a person. Directors who keep that separation make clearer decisions and recover better.

Do not carry it alone

Talk to someone — a co-director, a trusted adviser, family, or a support line. Isolation makes everything heavier and worse. Sharing the load lightens it and often surfaces options you had not seen.

Use the specialist support

Free services such as Business Debtline take the financial weight off your shoulders, and charities and helplines exist specifically for people under money stress. Reaching out is a strength, not a weakness — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

Looking after yourself keeps you able to lead the recovery the company needs.

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: Managing the stress of running a struggling business, Looking after yourself while handling business money stress, Where to get free business debt advice.

Open this answer →

Choosing the right debt adviser matters. The wrong one costs money and time; the right one can save the business. A few questions up front tell you which you have found.

Are you free and independent?

Ask whether the advice is free and independent. Services like Business Debtline are both, which means their only interest is your best outcome. Be cautious of anyone charging upfront fees or steering you to a single product.

What are all my options?

A good adviser lays out the full range — informal arrangements, restructuring, formal insolvency where relevant — not just one route. If you are only offered one answer, seek a second opinion.

What happens next, and what will it cost?

Understand the process, the timescale, and any costs before you commit to anything. Clarity up front prevents nasty surprises later.

Free, independent help is available — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

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: Free debt advice services for UK company directors, Where to get free business debt advice, When to bring in a professional adviser.

Open this answer →

The companies that ride out shocks best are rarely the biggest — they are the ones with a buffer. Rebuilding one after a hard year is a deliberate, gradual job.

Set a target

Aim, over time, for enough cash to cover a few months of essential outgoings — wages, tax, rent, key suppliers. Knowing the number turns a vague intention into a plan.

Automate small, regular transfers

Move a fixed sum into a separate reserve account every time you are paid, before you spend on anything discretionary. Small and automatic beats large and occasional, because it actually happens.

Protect the buffer

Treat the reserve as off-limits for ordinary spending. Its whole value is being there for the unexpected — a late debtor, a broken machine, a quiet month — so the company does not have to borrow in a hurry.

A healthy buffer also strengthens what the company can borrow when it genuinely needs to.

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: Getting your company back on track after arrears, How to build a simple cash-flow forecast to stay ahead, Building a recovery plan after a difficult period.

Open this answer →

A bad debt — a customer who simply cannot pay — is one of the most demoralising hits a business takes. Recovering means dealing with both the cash gap and the lessons.

Deal with the immediate gap

Assess the cash-flow hole the write-off leaves and act quickly: chase other debtors, trim costs, and arrange short-term support where the gap is a timing issue rather than a permanent loss.

Claim what you can

Register as a creditor if the customer is in an insolvency process, and check whether the VAT on the bad debt can be reclaimed. Small recoveries still help.

Reduce the next one

Tighten credit control: check new customers, set sensible credit limits, invoice promptly and chase consistently. Consider credit insurance for large exposures. A bad debt is painful; a repeat is avoidable.

If the write-off causes a temporary gap, talk to us about a short arrangement.

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: Chasing late-paying customers to ease cashflow, Getting your company back on track after arrears, How to read your own early-warning signs.

Open this answer →

One of the most overlooked levers in a squeeze is on the payments-out side: your suppliers. A short extension of terms can free up as much breathing room as a loan, at no interest cost.

Ask early and honestly

Approach suppliers before you miss a payment, not after. Explain the position plainly and propose a specific new arrangement — longer terms, a staged payment — rather than simply asking for leniency.

Offer something in return

Suppliers flex more readily when there is something in it for them: a firm commitment to a date, continued orders, or paying a portion up front. A win-win is easier to agree than a favour.

Protect the key relationships

Prioritise the suppliers you cannot trade without. Keeping them onside is worth more than clearing a less critical account, and a good long-term supplier relationship is an asset worth protecting.

Easing payments-out complements any support on the loan itself.

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: Talking to suppliers about payment terms, What to do when you cannot pay a supplier, How to cut costs without cutting capacity.

Open this answer →

Formal insolvency processes are the last resort, not the first. A company under pressure has a range of informal rescue options that can work if acted on early enough.

Informal creditor arrangements

Many difficulties are resolved by talking directly to creditors and agreeing revised terms — extended dates, reduced payments, staged catch-up. Done across all your creditors, this can stabilise a company without any formal process.

Restructuring the business

Cutting non-essential costs, exiting loss-making lines, renegotiating leases and contracts — practical restructuring can restore viability where the core business is sound.

Sensible refinancing

Where the numbers work, replacing expensive or awkward debt with better-structured finance can help. The test is always affordability out of real cash flow, not optimism.

Acting early is what keeps these informal routes open — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

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: Options before a cashflow problem escalates to insolvency, Restructuring costs to protect your business, Understanding business insolvency options.

Open this answer →

When a company hits a difficult patch, the instinct is often to cut hard and fast across the board. A more durable approach is to restructure deliberately: protect what generates revenue and reduce what does not, so the business comes out leaner rather than weaker.

A measured way to review costs

• Separate costs that directly win or deliver work from costs that merely support it.
• Look for subscriptions, licences and services that have quietly become unused.
• Review supplier contracts for better terms before cancelling outright.
• Consider whether some fixed costs can become variable, so they flex with demand.

Protect your capacity to earn

Be careful about cutting the things that bring revenue in: sales effort, the people customers rely on, and the quality that keeps them loyal. Cutting too deep there can shrink the business faster than the savings help. The aim is a cost base the company can sustain through the trough and scale back up in recovery.

If restructuring frees up cash but the timing is awkward against a Credicorp Flex or Credicorp Slice repayment, talk to us. We may be able to adjust the schedule for a period while your changes take effect, so a sensible recovery plan is not derailed by a single difficult month.

See also: How can better credit control ease our cashflow pressure?, How can a seasonal business manage the quiet months?, Building a realistic recovery plan after a difficult period.

Open this answer →

When cash is desperate, low-margin or even loss-making work can look like oxygen. Occasionally it is; as a strategy it can quietly kill a company.

The short-term case

Very occasionally, work that contributes something towards fixed costs and keeps cash moving is better than idle capacity, if it genuinely bridges to a stronger position. The key word is bridge.

The trap

Repeatedly taking work below cost trains customers to expect low prices, fills capacity that could serve profitable work, and disguises the real problem. It turns a revenue problem into a slow bleed.

Judge each job on cash and margin

Ask whether a specific job improves your cash position without locking you into loss-making commitments. If it is a one-off bridge, maybe. If it is becoming your business model, stop and fix the pricing.

Underpricing is a common route into difficulty; watch it closely.

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: The difference between a cost problem and a revenue problem, Surviving a sudden rise in costs, Building a realistic turnaround plan on one page.

Open this answer →

Fraudsters know that a business under pressure will grab at a lifeline. That makes struggling companies a target for debt and lending scams. A little scepticism protects you.

Red flags to watch for

Be wary of upfront fees for a loan you have not received, guaranteed approval regardless of circumstances, pressure to decide immediately, and contact from firms you never approached. Genuine lenders do not work this way.

Check who you are dealing with

Verify a lender or adviser independently before sharing details or paying anything. Use official channels and public registers rather than links or phone numbers a caller gives you.

If a debt collector contacts you

If someone claims to be collecting a debt, confirm it is genuine before paying. Check it against your own records and contact the original creditor directly using details you already hold.

If a contact about a Credicorp account looks suspicious, verify it via our official contact page.

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: A debt-collection agency has contacted me — is it genuine?, How do we avoid making difficulty worse with quick-fix borrowing?, Should I borrow more to cover a missed payment?.

Open this answer →

A sharp rise in input costs — energy, materials, wages, finance — can wipe out a margin that took years to build. Reacting quickly and deliberately is what protects the company.

Understand the new margin

Recalculate your margins at the new cost levels so you know exactly where you stand. You cannot price or cut sensibly until you can see the real numbers.

Pass on what you can, cut what you must

Where the market allows, adjust prices to reflect higher costs — customers often expect it in a rising-cost environment. Where it does not, find offsetting savings that do not damage capacity.

Bridge a genuine transition

If there is a lag between costs rising and prices catching up, a short facility can bridge it. But if higher costs are permanent and cannot be passed on, the answer is restructuring, not borrowing.

For a genuine transition gap, a short arrangement or facility can help — talk to us.

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: How to cut costs without cutting capacity, Restructuring costs to protect your business, Using short-term finance responsibly in a squeeze.

Open this answer →

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.

Open this answer →

When debts pile up, refinancing — replacing them with a new, bigger facility — can look like a clean solution. Sometimes it is; often it just buys time at a growing cost.

The trap

Refinancing that lowers your total cost and gives you a genuinely affordable schedule can be sensible. Refinancing that simply moves the shortfall forward, adds fees, and leaves you with a larger debt is a trap dressed as a rescue.

Test it against the business

Ask whether the underlying business can afford the new arrangement out of real cash flow. If the answer depends on optimistic assumptions, the refinancing is postponing a reckoning, not resolving it.

Arrangements are often cheaper than refinancing

Before refinancing, check whether a payment arrangement on your existing loan solves the problem more cheaply. On our loan the cost of a managed delay is capped, so it often beats a new facility with fresh fees.

If in doubt, talk to us about an arrangement before taking on new debt.

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: How do we avoid making difficulty worse with quick-fix borrowing?, Should I borrow more to cover a missed payment?, Using short-term finance responsibly in a squeeze.

Open this answer →

Two companies can be equally short of cash for opposite reasons. Knowing whether you have a cost problem or a revenue problem is the first step to fixing the right thing.

A cost problem

If revenue is holding up but costs have crept or jumped — rising inputs, bloated overheads, expensive finance — the fix is on the cost side: renegotiate, cut non-productive spend, and restructure. Borrowing rarely helps a cost problem.

A revenue problem

If sales have fallen — lost customers, weaker demand, thinner pipeline — no amount of cost-cutting alone will fix it beyond a point. The fix is rebuilding revenue, and cost cuts must protect the capacity to earn.

Often it is both

Many difficulties are a mix. Separating them lets you attack each with the right tool, rather than applying a cost fix to a revenue problem or vice versa.

An honest diagnosis makes any conversation with us, or a lender, far more productive.

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: How to cut costs without cutting capacity, Building a realistic turnaround plan on one page, Restructuring costs to protect your business.

Open this answer →

The first week of a cash-flow crisis sets the tone for everything that follows. Panic wastes it; a calm, ordered week buys options.

Days one to two: see the real position

Get an accurate figure for the cash you have, the money genuinely coming in over 30/60/90 days, and every obligation with a date attached. You cannot make good decisions without this picture, however uncomfortable it is.

Days three to four: rank and protect

Rank obligations by consequence — wages, tax, essential suppliers and premises first. Protect the cash that keeps you trading, and identify which payments you can move, reduce or arrange.

Days five to seven: open conversations

Start talking before deadlines. Creditors, HMRC and lenders — including us — almost always respond better to an early, specific proposal than to silence. A short call now prevents an enforcement letter later.

For free, structured help through week one, Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

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: Spotting early warning signs of cashflow trouble, How to prioritise which bills to pay first, How to talk to creditors when your business is struggling.

Open this answer →

When a company cannot pay everyone, the law decides who gets paid first. Knowing the broad order helps you understand where a business loan and other debts sit.

Secured and priority claims first

Certain secured creditors and specific priority claims — including some employee entitlements — generally rank ahead of others. The exact order is set by insolvency law, not by who shouts loudest.

Then unsecured creditors

Unsecured creditors, which a business loan with no security would typically be among, rank behind priority claims and share in what is left. Because a Credicorp loan takes no personal guarantee, the claim sits against the company, not the director.

Why it matters before insolvency

Understanding the order is a reason to act before insolvency: an arrangement while the company is still trading almost always produces a better outcome for everyone than a distribution afterwards.

Take specialist advice on where specific debts rank in your situation.

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 happens to my loan if the company becomes insolvent?, What happens to employees if a company cannot pay?, Understanding business insolvency options.

Open this answer →

The most expensive way to handle a cash-flow problem is to ignore it. Avoidance feels easier for a week and costs far more over a month.

Problems compound

An unaddressed shortfall grows: interest accrues, arrears build, creditors escalate, and the options that were cheap and easy narrow into ones that are costly and hard. Time is rarely on the side of avoidance.

Relationships suffer

Creditors, suppliers and lenders respond to engagement. Going silent burns the goodwill that early contact preserves, making everyone less willing to help when you finally do ask.

The cheap fixes disappear

A date change, a short extension or a small cost cut can solve an early problem. Left to fester, the same problem may need an arrangement, a restructure, or worse. Acting early is simply cheaper.

The antidote is early action — with creditors, and with us.

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: How to read your own early-warning signs, The first seven days of a cash-flow crisis, Why talking to us early gives you more options.

Open this answer →

If a company reaches the point where it genuinely cannot pay its debts as they fall due, there is a structured set of options under UK insolvency law. Knowing the broad picture helps you have a sensible conversation with a professional. This is general information only; the right route depends entirely on your circumstances and must be advised by a licensed insolvency practitioner.

Routes you may hear about

• Company Voluntary Arrangement: a formal agreement to pay creditors over time while the company keeps trading.
• Administration: a process to protect a company while a rescue or better outcome is pursued.
• Creditors' Voluntary Liquidation: directors choosing to wind the company up when rescue is not viable.
• Informal arrangements: negotiated payment plans agreed directly with creditors, outside any formal process.

The common thread

The earlier you take advice, the more of these options remain genuinely available. Rescue routes in particular depend on acting while the company still has something to save. A licensed insolvency practitioner can explain which paths fit and what each means for directors and creditors.

Because a Credicorp Flex or Credicorp Slice loan is made to the company, it forms part of this picture. Keep us informed if a formal process is being considered, and tell your adviser about the facility so it is properly accounted for in any plan.

See also: What is insolvency?, Where can my company get free, independent business debt advice?, What not to do when your company cannot pay.

Open this answer →

Many profitable companies still run out of cash, because profit and cash are different things. Learning to read cash flow is what keeps you solvent.

Profit is not cash

You can be profitable on paper and still unable to pay a bill this week, because sales made are not the same as cash received. Cash flow shows the money actually moving, which is what pays wages and loans.

Watch the timing

Cash difficulties are usually timing problems: money goes out before it comes in. A cash-flow view highlights those gaps in advance, so you can act — chase a debtor, move a payment, arrange a bridge.

Use it to decide

Let cash flow, not the profit-and-loss, drive your short-term decisions in difficulty. It is the number that tells you whether you can meet the next obligation.

A cash-flow forecast turns this understanding into a forward-looking tool.

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: Why a rolling forecast beats a static budget in difficulty, Building a thirteen-week cashflow forecast, How to build a simple budget when cash is tight.

Open this answer →

There is a hard-won upside to a cash-flow crisis: it forces attention onto problems that were easy to ignore in the good times. Used well, the crisis makes the business better.

The crisis reveals the weak points

Thin margins, sloppy collections, over-reliance on one customer, bloated costs — a crisis drags these into the open. That visibility is uncomfortable but valuable; you cannot fix what you refuse to see.

Fix the root, not just the symptom

Resist the urge to patch the immediate gap and move on. Address the underlying cause — reprice, tighten credit control, diversify — so the same crisis does not recur in six months.

Come out structurally stronger

Companies that treat a crisis as a diagnosis, not just an emergency, often emerge leaner, better run and more resilient than before. The pain, at least, is not wasted.

Turning a crisis into lasting fixes is the difference between surviving and improving.

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: Learning the lessons once the crisis has passed, Building financial resilience so difficulty does not recur, The difference between a cost problem and a revenue problem.

Open this answer →

Short-term business finance is a tool, and like any tool it can build or break depending on how it is used. In a squeeze the crucial question is what kind of gap you are filling.

A timing gap: finance can help

If the money is genuinely coming — a confirmed contract, an invoice you will be paid on — short-term finance can bridge the wait sensibly. The cost is known: 0.25% per day, a one-time £5 fee, capped at 100% of what you borrow, with no personal guarantee.

A structural hole: finance makes it worse

If income has fallen and is not coming back, borrowing to cover the gap only postpones and enlarges the problem. Here the answer is fixing the business — cutting costs, rebuilding revenue — not more debt.

Be honest about which it is

The single most important thing is to diagnose the gap correctly. Take independent advice if you are unsure — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

See how a short bridge can work when the gap is genuinely temporary in the guide below.

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: How short-term finance can bridge a temporary cashflow gap, How do we avoid making difficulty worse with quick-fix borrowing?, Should I borrow more to cover a missed payment?.

Open this answer →

Life does not stop while a loan is being repaid. Sometimes a director or someone close to them is going through something difficult, and that can make managing money and dealing with a lender much harder. If that is you, please tell us. We can put extra support in place, and asking for it is straightforward. It never affects the decision on your company's application or the way we treat you, except to make sure we look after you properly.

We take this seriously because it is the right thing to do. Anyone can find themselves needing a bit more help, sometimes suddenly, sometimes for a short while. We want you to feel able to ask.

What counts as needing extra support

There is no fixed list, and you do not need a label to qualify. People commonly ask for extra support because of:

• Health, including a physical illness, a mental-health condition, a disability, or a recent diagnosis.
• Bereavement, such as the death of a business partner, family member or someone close.
• Caring responsibilities that take up time and energy.
• A major life event, such as relationship breakdown, or a sudden change in circumstances.
• Communication needs, for example if you find phone calls hard, need information in large print, or need a little more time to take things in.

This is not exhaustive. If something is making this harder for you, that is reason enough to tell us.

How we adjust

Once we know, we tailor our support to you. Depending on what helps, that can mean giving you more time to respond, communicating in a way that suits you, sending documents in an accessible format, speaking with someone you nominate to help you, or being especially careful and patient in how we handle your account. If money is also tight, we can look at the payment options described in our hardship and forbearance process at the same time.

You can read more about our approach on our vulnerability page.

How to tell us

You can let us know whenever it suits you, and you only need to tell us once. The simplest way is to complete the Additional Support Needs form, which goes straight to the right team. For step-by-step guidance, see I need extra support, how do I tell you?. You can share as much or as little detail as you are comfortable with; even a short note helps us understand what you need.

Your privacy

What you tell us is treated sensitively and kept confidential, and it is only used to support you. It does not count against your company in any way. We will record what helps so that you do not have to explain yourself again every time you contact us, and you can ask us to update or remove those notes whenever you like.

You are not on your own

Alongside the support we provide, free and independent help is available. For business money worries, Business Debtline offers free, confidential advice for small businesses and the self-employed at businessdebtline.org or on 0800 197 6026. If a director needs personal support, organisations such as Citizens Advice can help too. Whatever you are dealing with, telling us is the first step, and we will take it from there with care.

See also: How do we avoid making difficulty worse with quick-fix borrowing?, Building a realistic recovery plan after a difficult period, Building a thirteen-week cashflow forecast.

Open this answer →

A company voluntary arrangement, or CVA, is one of the formal rescue routes for a company that is fundamentally viable but weighed down by debt it cannot service on current terms.

What it does

A CVA is a legally binding agreement between the company and its creditors to pay back some or all of what is owed over an agreed period, usually while the company keeps trading. It is proposed with the help of a licensed insolvency practitioner.

Who it suits

It suits a business with a viable core that needs time and a restructured debt load, not one with no realistic future. Creditors have to approve it, so the proposal must be credible.

Where our loan fits

Our loan would be one of the company debts dealt with under the arrangement. Because there is no personal guarantee, the process concerns the company. Talking to us early may open a private arrangement that avoids a formal CVA altogether.

A licensed insolvency practitioner can tell you whether a CVA fits your company.

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: Understanding business insolvency options, Options before a cashflow problem escalates to insolvency, What happens to my loan if the company becomes insolvent?.

Open this answer →

A winding-up petition is one of the most serious things a creditor can do: it asks a court to close the company down. If one is threatened or issued, act immediately.

What it is

A winding-up petition asks the court to place the company into compulsory liquidation because it cannot pay its debts. It is a powerful, high-stakes step, and its consequences — including frozen bank accounts once advertised — can be severe and fast.

Respond urgently

Do not ignore a petition or a statutory demand that precedes one. There are strict deadlines and real remedies — paying, disputing a genuinely disputed debt, or negotiating — but only if you act at once.

Get specialist advice immediately

This is not a stage to handle alone. A licensed insolvency practitioner or solicitor should be involved straight away. Early action can sometimes stop a petition in its tracks.

If a demand or petition arrives, seek advice the same day — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

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: If a company is wound up or goes into administration, Dealing with a county court claim against your company, Understanding business insolvency options.

Open this answer →

A missed repayment can feel like a point of no return, but it is not. What matters far more than the miss itself is what happens around it: whether you contact us, when, and how openly. Companies that engage early almost always have a smoother path than those that go quiet.

What you can expect from us

• We will try to understand the cause and whether it is a one-off timing issue or a deeper difficulty.
• We will explain the options on your Credicorp Flex or Credicorp Slice facility, including our hardship and forbearance process.
• We will be clear about any charges or consequences set out in your agreement, using the terms you signed, not surprises.
• We treat companies in genuine difficulty with fairness and discretion.

Why early contact matters

The earlier you reach out, the more we can do. A conversation before a payment is due opens up far more options than one after several have been missed. Silence narrows what is possible for everyone.

Remember that our loan is made to your company, not to you as an individual, and we do not take personal guarantees from directors. As an exempt business lender, we sit outside the consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply, but our own complaints process is open to you and we take it seriously.

See also: What happens if I miss a payment?, What to do if you can't make a payment, Our hardship and forbearance process.

Open this answer →

Running a healthy company, your duty is to promote its success for the benefit of shareholders. When the company is in real financial difficulty and insolvency becomes a possibility, that focus shifts towards the interests of creditors. Understanding this change is important, because decisions made in this period can be looked at carefully later. This is general information, not legal advice.

Practical things that help

• Keep clear, dated records of the decisions you take and the reasons behind them.
• Hold and minute regular board discussions about the financial position.
• Avoid taking on new credit you have no realistic way of repaying.
• Treat creditors even-handedly rather than preferring connected parties.
• Take professional advice from an accountant or licensed insolvency practitioner sooner rather than later.

Why early advice matters

Directors who seek advice early usually have more legitimate options and a stronger record of having acted responsibly. Waiting until the position is critical narrows what can be done and removes the benefit of acting in good time.

If your company holds a Credicorp Flex or Credicorp Slice facility, keep us informed as part of acting responsibly toward your creditors. Our loan is to the company, and early, honest contact lets us respond constructively rather than reactively.

See also: How Credicorp treats businesses in financial difficulty, Looking after yourself while running a business in difficulty, Where can my company get free, independent business debt advice?.

Open this answer →

Running a limited company in financial difficulty is stressful, and many directors are not aware that their legal duties change as the situation becomes more serious. Understanding this early can prevent personal liability further down the line.

Your duties when trading normally

Under the Companies Act 2006, directors owe their primary duties to the company and, through it, to shareholders. These include acting within powers, exercising reasonable care and skill, promoting the success of the company, and avoiding conflicts of interest.

How duties shift under financial pressure

Once a company is approaching insolvency — or is insolvent — the law requires directors to give increasing weight to the interests of creditors, not just shareholders. This is not a cliff edge; it is a gradual shift that begins when you know or should reasonably know there is a real risk the company cannot pay its debts. In practical terms, this means:

• Do not pay dividends or return value to shareholders when creditors are unpaid
• Do not sell company assets at undervalue to connected parties
• Do not take on new credit obligations you have no realistic prospect of repaying
• Keep good records of every decision you make and why

Wrongful trading and misfeasance

If a company does become insolvent and is later wound up, an insolvency practitioner may review director conduct. Wrongful trading — continuing to trade and accumulate debt when you knew or should have known there was no reasonable prospect of avoiding insolvent liquidation — can result in personal liability. Taking prompt advice, documenting decisions, and not drawing excessive remuneration are all protective steps.

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: The difference between insolvency and a cashflow gap, Where to get free business debt advice, What are a director's duties when the company is in financial difficulty?.

Open this answer →

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, How do I spot the early warning signs of cashflow trouble?.

Open this answer →

Insolvency is a frightening word, and if your company is heading towards being wound up or entering administration, the last thing you need is uncertainty about what it means for your loan. Here are the basics, set out calmly and honestly. The most important message is this: talk to us early. The sooner we understand your situation, the more we can do to help, and the more options are likely to be open.

Facing financial difficulty does not make you a failure as a director. Many capable people go through it. What matters now is getting the right information and the right advice.

A quick note on the terms

These processes are formal, and they have specific meanings:

• Administration is a process that aims to rescue a company as a going concern, or to get a better result for creditors than winding up would, by placing it under the control of a licensed insolvency practitioner.
• Winding up (liquidation) is the process of closing a company down and distributing whatever assets remain to those it owes money to, in an order set by law.

Which process applies, and what it involves, depends on your company's circumstances, so independent advice is essential.

What happens to the loan

We lend to your company, not to you personally, and we do not take a personal guarantee from its director. That is an important point: the loan is the company's liability. If the company becomes insolvent, we become one of its creditors, and the loan is dealt with through the formal process alongside the company's other debts, under the control of the insolvency practitioner.

Before things reach that stage, it is well worth exploring whether difficulty can be resolved another way. Our hardship and forbearance process sets out the payment arrangements, short freezes and variations we can sometimes put in place to help a company recover without a formal insolvency at all.

The role of a licensed insolvency practitioner

A licensed insolvency practitioner is a qualified, regulated professional who administers formal insolvency processes. They take control of the situation, deal with creditors including us, and act in line with their legal duties. If you are considering administration or winding up, you should take advice from one before making decisions. You can find a licensed practitioner through R3, the trade body for insolvency professionals, at r3.org.uk.

Talk to us early

If you can see trouble coming, please do not wait until a formal process has begun. Contact us while there is still time to consider alternatives. We will treat the conversation with discretion and respect, and we will be honest with you about what is and is not possible. Even where insolvency turns out to be the right answer, talking to us early helps the process run more smoothly for everyone.

Where to get free advice

You do not have to work this out alone, and good advice is free. For your business, Business Debtline offers free, confidential and independent debt advice for small businesses and the self-employed at businessdebtline.org or on 0800 197 6026. They can help you understand your company's options and prepare for next steps. For a fuller list of free organisations, including how to find a licensed insolvency practitioner, see where can I get free independent debt advice in the UK?.

Whatever stage you are at, reaching out early, to us and to a qualified adviser, gives your company the best chance of a fair and orderly outcome.

See also: How do we avoid making difficulty worse with quick-fix borrowing?, Building a realistic recovery plan after a difficult period, Building a thirteen-week cashflow forecast.

Open this answer →

When a company is in trouble, its people are among the first things a responsible director worries about. Their position carries both legal weight and human weight.

Wages are a priority

Paying staff is a priority both practically — without them there is no business — and legally, as employee claims rank ahead of many others in an insolvency. Protecting wages is usually the right first call when cash is short.

Be honest and lawful

If redundancies or restructuring become unavoidable, follow the correct legal process and communicate honestly. Cutting corners on employment law adds legal risk to financial difficulty.

Statutory safety nets

Where a company becomes formally insolvent, statutory schemes exist to cover certain employee entitlements. A licensed insolvency practitioner or Acas can explain how these work in a specific case.

Handling staff well protects both people and the value of any rescue.

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: How to prioritise which bills to pay first, Directors' duties when a company is struggling, Managing the stress of running a struggling business.

Open this answer →

Tax bills are among the most common pressure points for a trading company under financial strain. HMRC offers a Time to Pay arrangement that can let a business spread a VAT, PAYE or Corporation Tax liability over an agreed period instead of paying it all at once. This is general information; HMRC sets its own criteria and the details depend on your circumstances.

What HMRC tends to look for

• That the company genuinely cannot pay in full now but can pay over time.
• That you have contacted them before the debt is overdue, not after enforcement begins.
• A realistic proposal showing how and when you will clear the balance.

How to approach it

Prepare your figures first, including a short cashflow forecast and the maximum you can commit each month without putting trading at risk. Contact HMRC directly through their business payment support service. Being proactive signals good faith and usually leads to a more workable outcome than waiting for a demand.

If managing both a tax arrangement and a Credicorp Flex or Credicorp Slice repayment is stretching your company, tell us. We can look at your repayment alongside what you have agreed with HMRC so the combined burden stays realistic. Coordinating your creditors deliberately is far better than juggling them in the dark.

See also: What an HMRC Time to Pay arrangement means for my Credicorp payments, How should my company prioritise which bills to pay first?, How to repay your Credicorp loan early.

Open this answer →

Many directors use the words interchangeably, but a cashflow gap and insolvency are quite different things, and confusing them can lead to either unnecessary panic or dangerous delay.

What is a cashflow gap?

A cashflow gap is a timing problem. Your company has the assets, orders, or future income to meet its obligations — it just does not have the cash available right now. A classic example is a business that has invoiced clients for work completed but is waiting 60 days for payment while suppliers are due in 30 days. The underlying business is sound; the issue is the mismatch in timing.

A cashflow gap is usually temporary and can often be resolved by accelerating income collection, deferring non-critical outgoings, or using short-term finance to bridge the shortfall.

What is insolvency?

Insolvency is a more serious legal condition. A company is technically insolvent if it cannot pay its debts as they fall due (cashflow insolvency) or if its total liabilities exceed its total assets (balance-sheet insolvency). Either test can apply. When a company is insolvent, directors have additional legal duties — including a duty to act in the interests of creditors rather than shareholders — and the options for recovery narrow significantly.

Why the distinction matters

If you are in a cashflow gap, you have time and options. Bridging finance, payment plans, and better debtor management can all help. If you are genuinely insolvent, you need professional insolvency advice quickly — from a licensed insolvency practitioner, not a generic financial adviser. Acting early in genuine insolvency can be the difference between a rescue and a compulsory winding-up.

If you are unsure which category applies to your company, a free consultation with an insolvency practitioner or a business support charity such as Business Debtline can help you understand your position without commitment.

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, The difference between a cost problem and a revenue problem.

Open this answer →

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, What should I do if my limited company cannot pay a supplier on time?.

Open this answer →

If your company cannot pay a supplier by the due date, the worst thing you can do is go silent. Most suppliers would far rather hear from you early than have to chase repeatedly — and many will work with you if you approach them before the payment is overdue.

Contact the supplier promptly

Call or email as soon as you know there will be a problem. Explain the situation plainly: you have a short-term cashflow gap, you intend to pay in full, and you would like to agree a revised date or a short instalment arrangement. Put any agreement in writing — even a simple email trail protects both sides.

• Be specific: offer a realistic date rather than vague promises.
• If you can pay something now, offer a part-payment to show good faith.
• Ask whether they can suspend late-payment interest or charges while the arrangement is in place.

Understand your legal position

Under the Late Payment of Commercial Debts (Interest) Act 1998, your supplier is entitled to charge statutory interest on overdue invoices between businesses. That does not mean they will — many suppliers waive it for customers they want to keep — but it is worth knowing. Ignoring the debt can also lead to a county court judgment (CCJ) against the company, which damages your credit profile.

Look at your wider cashflow

A missed supplier payment is rarely an isolated event. Use it as a prompt to review all upcoming payments and receivables. Can you accelerate collection from your own customers? Are there non-urgent costs you can defer? Short-term financing options such as a revolving credit facility can sometimes bridge the gap while you stabilise.

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, How to talk to creditors when your business is struggling, What happens to employees if a company cannot pay?.

Open this answer →

The strain of financial difficulty is not just financial. There is genuine support for directors carrying that weight, and using it is a strength.

Talk to someone early

Do not wait until you are overwhelmed. A conversation with a GP, a trusted person, or a support line can lift a surprising amount of weight. Isolation makes money stress far heavier than it needs to be.

Free specialist help

Charities and helplines exist specifically for people under financial and work-related stress, and services like Business Debtline take the financial side off your plate — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

Look after the basics

Sleep, movement and honest conversations are not luxuries in a crisis; they are what keep you able to make good decisions for the company that depends on you.

Protecting your own wellbeing is part of protecting the business.

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: Protecting your mental health through a business crisis, Looking after yourself while handling business money stress, Managing the stress of running a struggling business.

Open this answer →

If money is tight and a repayment is coming up that your company cannot meet, the single most useful thing you can do is tell us early. Get in touch before the due date, not after it. Reaching out is not a black mark against your company, and it does not make things worse. It gives us the time and the information we need to help, and it usually means more options are open than if a payment has already been missed.

We know this can feel difficult to raise. Cash flow gaps happen to good, well-run businesses, often through no fault of their own. Our job is to work with you, calmly and practically, to find a way through.

Tell us before the due date

The quickest way to start is through our payment arrangement form or the hardship variation form. Use the form that fits your situation so the right team picks it up, and tell us briefly what has changed: a late-paying client, a quiet trading month, an unexpected bill. You do not need to have all the answers worked out. You just need to start the conversation.

When you contact us, it helps to have a rough picture of your company's income and outgoings for the coming weeks, and an idea of what your business could realistically afford to pay and when. That lets us move faster.

What we can do

What we can offer depends on your circumstances, but the usual routes are:

• A short payment arrangement that spreads what is owed over a manageable period.
• A short freeze on payments to give your company breathing space to recover.
• A hardship variation where your situation is more serious or longer-lasting, which changes the terms of the loan to make it affordable.

We will never apply a charge that is not set out in your Business Loan Agreement, and we will explain any change clearly before it takes effect. If you want to understand the full range of help first, read I am struggling to pay, what should I do? and our hardship and forbearance process.

If a direct debit has already failed

A failed direct debit is not a crisis, and it is not the end of the conversation. Contact us as soon as you can so we can stop the situation drifting. The sooner we hear from you, the sooner we can agree a plan and put any further collection activity on hold while we sort it out.

Get free, independent advice

You do not have to face money worries on your own, and good advice costs nothing. For your business, Business Debtline offers free, confidential and independent debt advice for the self-employed and small businesses. You can reach them at businessdebtline.org or on 0800 197 6026. They can help you understand your options, prioritise your debts and prepare for a conversation with us or any other creditor.

For a wider list of free organisations that can help, see where can I get free independent debt advice in the UK?.

A note on how we work

We lend to your company for business purposes, and we do not take a personal guarantee from you as its director. We will always treat you fairly and with respect, and we will be honest about what we can and cannot do. If your circumstances include health, bereavement, caring responsibilities or anything else making this harder, tell us, and we will adjust how we support you. The most important step is the first one: contact us early, and let us help you find a way forward.

See also: How do we avoid making difficulty worse with quick-fix borrowing?, Building a realistic recovery plan after a difficult period, Building a thirteen-week cashflow forecast.

Open this answer →

An overdraft being reduced or withdrawn can turn a manageable position into a tight one overnight, because it removes the flexible cushion you had been leaning on.

Understand the new position

Work out immediately how the loss of the facility affects your cash flow over the next few weeks. Update your forecast so you can see the pinch points before you hit them.

Talk to everyone early

Speak to your bank about alternatives, and to your other creditors — including us — about easing pressure while you adjust. Early, honest conversations open options that silence closes.

Rebuild flexibility carefully

Replace the cushion prudently: faster collections, a rebuilt cash buffer, or a well-priced facility used only for genuine timing gaps. Avoid simply swapping one expensive short-term prop for another.

If the loss of an overdraft creates a temporary gap, a short arrangement can help.

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: The danger of refinancing your way out of trouble, Using short-term finance responsibly in a squeeze, Building a thirteen-week cashflow forecast.

Open this answer →

A single anchor client can look like security and behave like a liability. When most of your revenue rests on one relationship, their problems become yours overnight.

The risk of concentration

If one customer is the bulk of your turnover, a late payment, a squeezed budget or a lost contract from them can tip the whole company into difficulty. The dependence also weakens your negotiating hand.

Reduce it over time

Deliberately win smaller clients to dilute the concentration. Even modest diversification means no single loss is fatal. Treat it as a strategic priority, not an afterthought.

Manage it in the meantime

While the dependence exists, keep a bigger cash buffer, watch that client's own health, and tighten payment terms. If they wobble, a short bridge plus fast action on new business can carry you through.

If an anchor client's late payment causes a gap, a short arrangement can bridge it.

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: A big customer has gone into administration and owes us, What a late-paying customer means for your loan payments, Building a recovery plan after a difficult period.

Open this answer →

Directors can handle a lot themselves, but there are moments when professional help pays for itself many times over. Knowing when to reach for it is part of running a company well.

An accountant or bookkeeper

If your numbers are unclear or your forecasting is shaky, an accountant can quickly give you the accurate picture every good decision depends on. This is often the first and cheapest professional to involve.

A turnaround adviser

When the business is fundamentally viable but needs restructuring — costs, contracts, financing — a turnaround specialist can bring experience you do not have in-house and a plan creditors trust.

A licensed insolvency practitioner

If insolvency is a real risk, a licensed insolvency practitioner can explain your duties and options clearly. Speaking to one early is prudent, not defeatist, and can open rescue routes you did not know existed.

Free services such as Business Debtline can also point you to the right professional — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.

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: Can a third party or accountant deal with us on your behalf?, Understanding business insolvency options, Where to get free business debt advice.

Open this answer →

Deciding whether to push on or to stop is one of the loneliest calls in business. It is part commercial judgement and part legal duty, and getting it right protects both the company and you.

The commercial question

Is there a realistic, evidenced path back to viability — a recovering pipeline, a workable restructure, a bridge that the numbers support? If yes, trading on to reach it can be right. If the plan rests on hope, be very careful.

The legal line

As insolvency looms, continuing to run up debts you cannot repay can expose a director to personal liability for wrongful trading. Keep records of your reasoning, and take advice when the risk is real.

Get advice at the pivot

This is precisely the moment to involve a licensed insolvency practitioner. Early advice can reveal a rescue route, or confirm that stopping now protects more than pressing on.

If you are at this decision, take advice quickly — it is the responsible move, not a defeat.

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: A director's legal duties when money is tight, Is my company insolvent, or just short of cash?, Rescue options that avoid formal insolvency.

Open this answer →

If your limited company is struggling with debt or cashflow, you do not need to pay for advice to get started. Several well-regarded organisations offer free guidance specifically for businesses, with no obligation and no referral fee.

Business Debtline

Run by the Money Advice Trust, Business Debtline (businessdebtline.org) offers free, confidential debt advice for self-employed people and small businesses, including limited companies. Advisers can help you understand your options, prioritise debts, and communicate with creditors. Available by phone and online webchat.

British Business Bank — Business Support Helpline

The British Business Bank operates a Business Support Helpline (0800 998 1098) that connects businesses in England to local growth hubs, where advisers can help with cashflow planning, finance options, and signposting to specialist services. Equivalent services exist in Scotland (Business Gateway), Wales (Business Wales), and Northern Ireland (Invest Northern Ireland).

Licensed insolvency practitioners

If you are concerned your company may be insolvent rather than just cashflow-squeezed, a licensed insolvency practitioner (IP) is the right person to speak to. Many IPs offer a free initial consultation. You can find a licensed practitioner through the Insolvency Practitioners Association (insolvency-practitioners.org.uk) or the R3 association (r3.org.uk). Be cautious of unregulated debt-management firms that charge upfront fees — a licensed IP is regulated and must put your interests, and your creditors' interests, first.

HMRC Business Payment Support Service

If part of the problem is an upcoming tax bill, HMRC's Business Payment Support Service (0300 200 3835) can discuss Time to Pay arrangements before the deadline passes. It is free to use and calling early significantly improves the outcome.

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: The difference between insolvency and a cashflow gap, How to talk to creditors when your business is struggling, Where can my company get free, independent business debt advice?.

Open this answer →

When a company is under financial pressure, good independent advice is one of the most valuable things you can get, and much of it is free. Speaking to someone outside the business helps you see options clearly and avoid the high-pressure sales of firms that profit from distressed companies.

Reputable places to start

• Your own accountant: often the fastest source of practical, business-specific insight if you already work with one.
• Business Debtline: a free, independent service offering debt advice to self-employed people and small businesses.
• A licensed insolvency practitioner: many offer a free initial conversation; they are regulated and must be properly licensed.
• Local growth hubs and chambers of commerce: useful for signposting and regional support.

How to choose well

Be cautious of any firm promising to make debts disappear, charging large upfront fees, or pushing you toward a single solution before understanding your situation. Genuine advisers explain the range of options and let you decide. Always check that an insolvency practitioner is licensed by a recognised professional body.

If a Credicorp Flex or Credicorp Slice repayment is part of what is worrying you, speak to us directly as well. We can explain your specific options on your facility, which sits alongside the independent advice you take, not in place of it.

See also: Free business debt advice organisations in the UK, Understanding the main business insolvency and rescue options, Where can I get free, independent debt advice in the UK?.

Open this answer →

In calm times an annual budget is fine. In difficulty it is too slow and too abstract. A rolling cash-flow forecast is the instrument you steer by when every week matters.

What a rolling forecast is

It is a simple week-by-week projection of cash in and cash out, usually looking 13 weeks ahead, updated every week with what actually happened. It shows you the low points before you hit them.

Why it beats a static budget

A budget set months ago cannot see the late debtor or the surprise bill. A rolling forecast absorbs reality each week, so it warns you of a shortfall in time to act — move a payment, chase an invoice, arrange support.

Keep it honest and simple

A spreadsheet is enough. The value is in updating it and being honest about timing — when money will really arrive, not when it is due. An accurate rough forecast beats a precise fantasy.

See the step-by-step build in the guide below, then use it to talk to creditors early.

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 thirteen-week cashflow forecast, How to build a simple cashflow forecast when under pressure, How to build a simple cash-flow forecast to stay ahead.

Open this answer →

It is tempting to present the best possible face to a lender, or to stay quiet until you have to speak. In difficulty, early honesty is the strategy that actually works.

Honesty earns flexibility

A lender who trusts your account of the position will work with you. One who later discovers the picture was rosier than reality will not. Candour, even about bad news, is what unlocks flexibility.

Early gives more room

Bad news shared early leaves time for gentle solutions — an extension, a small reduction. The same news shared late forces harder, costlier measures. Time is the resource honesty preserves.

It protects the relationship

Lending relationships are long. A difficulty handled with honesty leaves the relationship intact and the door open for future borrowing; one handled with spin or silence does lasting damage.

With us, early and honest contact is exactly what opens every option.

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: Why talking to us early gives you more options, How to approach your bank when trading is tough, Keeping lenders and creditors updated during a recovery.

Open this answer →