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.