2 min read
The building blocks
Hold a cash reserve of a few months' fixed costs. Keep a share of costs variable so you can flex down quickly. Reduce concentration risk by spreading customers and suppliers. And arrange a standby facility while trading is healthy — it is easier to secure then than mid-crisis.
What this means for your company
Resilience is built in the good times. Run a rolling cash-flow forecast with a downturn scenario so you know your break-even and your runway before trouble hits. A pre-arranged facility you rarely touch is a cheap insurance policy — standby liquidity that turns a potential crisis into a manageable dip.
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.
Frequently asked questions
What is the single most important resilience measure?
A cash buffer. Most businesses that fail in a downturn do so because they run out of cash, not because they were unprofitable. A few months of fixed costs in reserve buys time to adapt.
Should I arrange finance before a downturn?
Yes, if you can. Lenders are more willing when you're trading well, so setting up a standby facility in good times means it's there if conditions worsen. Arranging finance mid-crisis is harder and dearer.
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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.