A key customer just went into administration owing me money — what now?

When a big customer fails owing you money, register as a creditor immediately, cut the exposure, and bridge the cash hole with a short facility rather than starving your own suppliers. An administration turns an expected receipt into an unknown one, so treat the invoice as unpaid for cash-planning purposes. Rework your cash-flow forecast without it and see how many weeks of runway you have left.

A key customer just went into administration

2 min read

RegisterAs a creditor at once

BridgeThe cash shortfall

DiversifyReduce single-customer risk

Deal with the immediate cash hole

An administration turns an expected receipt into an unknown one, so treat the invoice as unpaid for cash-planning purposes. Rework your cash-flow forecast without it and see how many weeks of runway you have left.

Register and protect your position

Submit your claim to the appointed administrator as an unsecured creditor and keep every purchase order, delivery note and signed contract. Recovery for unsecured creditors is usually pennies in the pound, so plan as if little comes back.

Bridge, don't starve the business

If the loss threatens payroll or your own supplier payments, a short working-capital facility covers the gap while you replace the lost revenue. That is far cheaper than defaulting on your own commitments and damaging your business credit.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

Will I get any of the money back?

Possibly a small fraction, and slowly. Unsecured trade creditors sit behind secured lenders, employees and preferential claims, so recovery is often minimal. Plan your cash on the assumption that little or none returns.

Should I keep supplying a customer in administration?

Only against payment in advance or a written undertaking from the administrator that new supply will be paid as an expense of the administration. Never extend fresh credit to a failing customer.