2 min read
Why this squeezes you
When a supplier withdraws credit terms, you suddenly have to pay up front for stock you used to get on 30 days. That's an immediate demand on cash even though nothing about your orders changed.
Fund the changeover
A working-capital facility covers the up-front payments so your supply keeps flowing while you adjust. It effectively replaces the credit the supplier withdrew.
Rebuild or diversify
Work to restore terms by paying reliably, and consider a second supplier so one firm's decision never squeezes you like this again.
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
What do I do if a supplier withdraws credit terms?
Fund the switch to cash payment with a working-capital facility so supply keeps flowing, then work to rebuild terms by paying reliably. A second supplier reduces your exposure to a repeat.
Can finance replace lost supplier credit?
Effectively, yes. A working-capital facility covers the up-front payments a supplier now demands, restoring the breathing room their credit terms used to give you.
Related reading
My supplier now wants payment up front — how do I cope?
When a supplier moves you to up-front payment, the sudden cash demand can be bridged with short-term finance…
Read →
How do I cover a supplier payment before I get paid?
When a supplier wants paying before your customer pays you, a short facility bridges the gap and protects the…
Read →
Can I use a business loan to pay suppliers?
Yes. Using short-term finance to pay suppliers is a common, sound use of working capital. Whether you need to…
Read →A customer wants to place a huge order on credit terms — how do I fund the exposure?
A big order on credit ties up your cash and puts it at risk; finance funds the exposure while credit checks…
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.