2 min read
The growth trap
Winning more work from a big client is good news that costs money first — you hire, buy stock and expand capacity before the invoices are paid. This is the most common reason profitable businesses run short of cash.
Fund the ramp-up
A working-capital facility covers the up-front cost of scaling, while invoice finance releases cash as you bill the client. Together they keep the growth self-funding.
Watch the concentration risk
One large client is powerful and dangerous. Make sure the extra margin covers the finance and that you are not so exposed that a single change of mind sinks you.
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
Why do growing businesses run out of cash?
Because growth is spent before it is earned — wages, stock and capacity come before the customer pays. Working-capital finance closes that gap so profitable growth doesn't stall for want of cash.
Should I take on one client that dominates my revenue?
Only with eyes open. The work can be great, but keep pursuing other customers so you are never one decision away from a cash crisis.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.