My turnover dropped and I need to right-size the business — how do I fund the change?

Right-sizing after a turnover drop carries up-front costs — redundancy, exit, changeover; a short facility funds them so you reach a sustainable size without a cash crisis. Counter-intuitively, shrinking to a sustainable size costs money — redundancy, lease exits, writing down stock. Those one-offs land before the lower cost base takes effect.

My turnover dropped and I need to right-size

2 min read

Turnover droppedResize needed

Up-front costsRedundancy, exit

Fund the changeShort facility

The cost of getting smaller

Counter-intuitively, shrinking to a sustainable size costs money — redundancy, lease exits, writing down stock. Those one-offs land before the lower cost base takes effect.

Fund the transition

A short working-capital facility covers the cost of right-sizing so you reach the sustainable shape without a cash crisis mid-change. Model the new cost base on your break-even calculator.

Size to the new reality

Cut to a level the current turnover genuinely supports, not a hopeful one. Finance the change once, reach a sustainable base, and avoid a second painful round.

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

Can I borrow to fund downsizing my business?

Yes. Right-sizing carries up-front costs — redundancy, lease exits, stock write-downs — that a short facility can fund, so you reach a sustainable size without a cash crisis.

How do I know how much to cut?

Work back from a break-even at your current turnover. Cut to a cost base that level genuinely supports, so you resize once rather than facing a second painful round.