When demand drops - what manufacturers can do to protect cash flow

• Cash flow challenge: My sales have slowed down, but I still need to cover payroll, suppliers, and overheads without draining reserves.

• Perfect for: Manufacturing businesses facing downturns, seasonal dips, or demand shocks that put pressure on working capital.

Novuna helps manufacturers manage demand fluctuations with funding options that stabilise cash flow. We compare providers, support your application, and make sure you get the right finance to keep production sustainable

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Why falling demand puts pressure on cash flow

Manufacturers often operate on tight margins, with high fixed costs for labour, machinery, and materials. A drop in demand can quickly reduce income while expenses remain constant, creating a cash flow gap.

Practical steps to protect cash flow

Review and reduce overheads

Identify non-essential spending and streamline operations to reduce fixed costs.

Negotiate with suppliers

Agree on extended payment terms or bulk purchase discounts to free up short-term cash.

Diversify product lines

Adapt production to meet changing customer needs or explore new markets to spread risk.

Build a cash buffer

Use surplus profits from busy periods to create reserves that can support the business during downturns.

Explore flexible staffing models

Consider temporary or flexible contracts to align payroll more closely with demand.

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Funding options to support during low demand

Working capital loans

Short-term funding to bridge cash flow gaps and cover essential expenses.

Invoice finance

Release funds tied up in unpaid invoices to maintain liquidity. 

Trade finance

Helps fund raw materials and supplies without tying up working capital.

How Novuna Business Cash Flow helps

Novuna partners with manufacturers to keep cash flow stable even when sales slow. From working capital loans to invoice finance, we ensure your business has the flexibility to weather demand fluctuations and continue operating with confidence.