Get your small business through a cash-flow crisis

This guide is for sole traders, partners and directors of small limited companies who can see that money coming in will not cover what is due over the next few weeks or months. Cash-flow problems are common and often survivable when tackled early and honestly, but ignoring them narrows your options fast. You will build a short-term cash forecast, put your bills in priority order, speed up money owed to you, negotiate time to pay with HMRC and suppliers, and recognise when you need specialist advice. By the end you will have a written 13-week rescue plan and the messages to put it into action; this is general information, so get advice from Business Debtline or a qualified adviser for your situation.

What is inside

• Full step-by-step method9 detailed steps with decision points
• Ready-to-use templates13-week cash forecast layout · Phone script for HMRC Time to Pay · Email to a key supplier asking for revised terms
• Timed action plan8 stages from “Day 1” to “After week 13”
• Costly mistakes to avoid4 traps and what to do instead
• Complete checklist12 items to tick off
• Insider tips and fixes4 tips and 4 common problems solved

Step by step

1. Stop and get a true picture of cash today

   Set aside a full morning without customer work. Write down the actual balance in every business account, overdraft limits and any cash, and list everything you owe with its due date: HMRC, rent, wages, loans, suppliers, card balances and finance agreements. Then list everything owed to you, with the date each invoice was due and how likely it is to be paid. Do not use averages or hopes; use bank statements, your accounting software and the invoices themselves. This snapshot will feel uncomfortable, but every later decision depends on it being accurate.