Common business cash flow problems and how to solve them

• Cash flow challenge: I keep running into cash flow problems but I’m not sure what the root cause is or how to solve them before they damage my business.

• Perfect for: Small and medium businesses that struggle with late payments, rising costs, or inconsistent income.

Novuna helps UK businesses identify cash flow issues early and access funding that bridges the gap. We compare providers, guide you through the application process, and ensure you get the right support to keep your business running smoothly.

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Why cash flow problems matter

Even profitable businesses can run into trouble if money isn’t coming in fast enough to cover costs. Common issues like late payments, seasonal dips, or overtrading can quickly put pressure on wages, suppliers, and growth plans. The key is recognising the type of cash flow challenge you’re facing and matching it with the right solution.

The most common cash flow problems and their solutions

1. Late customer payments

One of the biggest issues for SMEs is waiting too long for invoices to be paid. This can disrupt wages, supplier payments, and investment plans.

Solution: Use clear payment terms, follow up with reminders, and consider late payment solutions such as credit control or invoice finance.

2. Needing funds quickly

Unexpected bills, supplier demands, or payroll deadlines can leave businesses short on cash.

Solution: Short-term facilities such as quick business loans or merchant cash advances fall under quick funding options, giving you access to money in as little as 24 hours.

3. Seasonal or irregular revenue

Retailers, hospitality, and project-based businesses often see income spike and dip throughout the year.

Solution: Build a cash reserve in peak months, or explore seasonal funding options like overdrafts and working capital loans designed for uneven cash cycles.

4. Overtrading and growth strain

Rapid expansion can drain cash flow if you’re paying suppliers and staff before clients pay you.

Solution: Careful forecasting and support from growth funding options such as working capital loans or asset finance can help businesses expand without overstretching.

5. Supply chain pressures

Businesses that import goods or rely heavily on suppliers can face upfront costs long before they receive income.

Solution: Supply chain finance tools such as trade finance or purchase order finance help cover these gaps.

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6. Poor financial visibility

Not knowing what is coming in and going out makes it hard to plan ahead and avoid surprises.

Solution: Good reporting and forecasting are vital. Novuna also supports businesses with cash flow management tools and flexible funding to keep everything on track.

How Novuna Business Cash Flow helps

Novuna works with businesses to pinpoint the exact source of cash flow strain and provide tailored funding to solve it. Whether you need quick finance to cover urgent bills, long-term support for growth, or tools to avoid future issues, we’ll make sure you have the right option in place.