2 min read
Why the switch costs cash
A new supplier rarely offers the credit terms you had with the old one, so you pay up front — sometimes for larger volumes to secure supply. That is a sudden hit to working capital even though the underlying orders are fine.
Fund the changeover
A short facility covers the upfront payments so you keep fulfilling customer orders while you rebuild terms with the new supplier. Use the working-capital calculator to size the gap.
Rebuild resilience
Where possible, split supply across more than one source so a single failure never stops you again. Finance buys the breathing room to do that properly.
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
Should I stockpile to avoid this happening again?
Hold enough buffer to cover a switch, but not so much that cash is tied up in slow stock. A modest buffer plus a standby facility is usually the efficient answer.
Can finance cover paying a new supplier in advance?
Yes. A working-capital facility is designed for exactly this — bridging the gap between paying for supply and being paid by your customers.
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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.