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Freeths - Law firm

Cashflow Issues

Cashflow is the lifeblood of all businesses and bad cashflow can spell the end for even the most impressive companies as not paying HMRC, rent, employees and suppliers can push your business towards insolvency.


What causes cashflow issues?

Bad cashflow can be caused by a number of factors such as:

  • Customers not paying you on time
  • An over reliance on one / a small number of customers
  • Poor credit control procedures and customer due diligence
  • Over trading with customer(s)
  • Costs of finance such as loans and invoice finance too high
  • Overheads such as materials and / or staff costs too high
  • Increased utility costs


Contact us for cashflow advice >


What can be done to resolve this?

Taking control of cashflow is vital to saving a business and this can be achieved by:

  • Instructing a debt recovery expert to bring all customers back within terms
  • Implementing a more efficient credit control procedure with the assistance of the above
  • Reviewing all costs and cutting where possible where it will not affect business performance negatively
  • Engaging with suppliers to negotiate more favourable terms
  • Consider refinancing to cheaper products if possible

However sometimes even after carrying out the steps above the issues are too severe and a Director may have to consider taking advice from a business rescue expert.

How we can help

If this is your business and you would like to discuss the matter with a business rescue expert then please get in touch with one of us today. We have relationships with business rescue experts nationally and can provide an initial consultation free of charge.


Contact us for cashflow advice >

Key contacts

Graeme Danby

0345 634 2545

Kevin Pinkerton

0345 634 2560

Alternatively complete the form below:

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‘Doing the right thing’ is at the heart of Freeths. Find out more about our excellent client service and the strong set of values that guide the way we work.

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Freeths are a leading national law firm with 13 offices across the UK. If you have a query about our services or just want to find out more, why not give us a call?

Contact: 03301 001 014

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