An overdraft being reduced or withdrawn can turn a manageable position into a tight one overnight, because it removes the flexible cushion you had been leaning on.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