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.