Alternatives to Insolvency: Funding Options Advisors Should Know
I’ve been having more conversations lately with accountants and debt advisors dealing with businesses stuck in a tough spot:
Cashflow stretched
Bank support tightening
Creditor pressure building
Often the focus is on cost-cutting, restructuring, or formal insolvency pathways.
But in some cases, the issue isn’t that the business is unviable, it’s that it’s underfunded for the position it’s in.
Where I tend to get involved is when:
There’s a confirmed order book but no working capital to fulfil it
Suppliers need upfront payment while debtors sit on 30–60 day terms
The bank has reduced or withdrawn support
This is where structured funding can change the conversation
Depending on the situation, that can include:
Purchase order finance to fulfil existing contracts
Invoice finance to unlock cash tied up in receivables
Import/export funding where applicable
When it fits, this can help:
Stabilise cashflow quickly
Reduce immediate pressure from creditors
Give the business breathing room to trade forward
In some cases, it’s the difference between winding down and working a business back to health.
Example Client:
A client with a confirmed $500k order, but no working capital after the bank reduced their facility. Supplier needs payment upfront, debtor terms are 45 days and suddenly the deal becomes a problem instead of an opportunity.
It’s not a fit for every situation.
But when there’s a viable core business underneath the pressure, it’s often worth exploring before more drastic steps are taken.
If you’ve got a client you’re not sure about, happy to talk it through confidentially.
No pressure just a second set of eyes on the structure.
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