My biggest client has gone into a payment

My biggest client has gone into a payment freeze while they restructure

When a large customer goes through an internal restructure, their accounts payable process is often one of the first things disrupted, which can mean invoices that were previously paid reliably suddenly sit unpaid with no clear date. This is particularly serious when that client represents a large share of your revenue, because there's rarely a fixed end date to work towards. Short-term finance can keep the company trading through the freeze while you push for payment and, if needed, diversify away from over-reliance on a single customer.

Why this is riskier than a normal late payment

An ordinary late payment usually has a reason and a rough timeline — an invoice query, a slow accounts team, a temporary cash issue at the client. A restructure is different: internal approval chains break down, the person who normally signs off payments may have left or changed role, and nobody at the client can give you a straight answer on when the freeze lifts.

If this client is a large share of your revenue, the freeze doesn't just delay one invoice, it can stall a meaningful chunk of your expected cash for an unpredictable period.

Stabilise the business first

The immediate priority is keeping payroll, suppliers and overheads covered while the freeze runs its course. Short-term finance against the company's own trading history — not against the frozen invoice specifically — gives you breathing room to keep operating normally rather than making rushed decisions (discounting other work, delaying supplier payments, cutting staff) purely because one client has gone quiet.

This is a case where borrowing against the health of the wider business, rather than trying to specifically finance the one stuck invoice, tends to be the more workable route.

Work the client relationship in parallel

While funding buys time, it doesn't replace chasing the debt. Escalate beyond your usual contact to whoever is running the restructure, get any commitment on paper even if it's informal, and keep a clear record of every promise and missed date — this matters if it later needs to go to formal recovery.

If the freeze drags on, it's also worth honestly assessing how exposed the business is to this one client and whether new business development needs to become a priority alongside managing the immediate cash gap.

What Credicorp looks at

Assessment focuses on the trading company's overall financial position and history, not on the disputed or frozen invoice itself. Recent management accounts, an aged debtor list showing the frozen amount, and a short explanation of the client situation are normally enough to have a sensible conversation.

Frequently asked questions

Should I stop supplying the client while payments are frozen?

That's a commercial judgement specific to your contract and relationship — get advice if the ongoing supply is significant, but it's worth knowing your contractual right to pause or require payment terms before you decide.

What if the client's restructure ends in insolvency?

That's a different and more serious scenario requiring a formal debtor claim — the earlier you flag any insolvency risk to your accountant and lender, the more options remain open.