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.