Company in financial crisis: what to do now
A financial crisis rarely arrives at once — it accumulates through small ignored signals. Below is the stabilization roadmap used in emergency diagnoses.
In a financial crisis the correct order is: 1) map real cash and total debt within 48 hours; 2) project 13 weeks to know when money runs out; 3) freeze non-essential spend; 4) renegotiate expensive debt and supplier terms; 5) accelerate receivables; 6) only then redesign the operating model. Cutting revenue before understanding cash usually deepens the crisis.
First 48 hours: see reality
Map bank balance, receivables by date, every debt with its effective rate, and monthly fixed expenses. Without that picture, every decision is a bet.
Week 1: the 13-week projection
The projection shows the exact week cash turns negative, which defines urgency and the size of the negotiation needed.
Weeks 2–4: stop the bleed and renegotiate
Freeze non-essential spend, prioritize debt by effective cost (not by size), renegotiate terms with strategic suppliers and offer controlled discounts to pull receivables forward.
Days 30–90: rebuild control
Reinstall cash flow, income statement and indicators. Recovery only holds when the company can see problems before they happen again.
A few minutes, no cost.
Frequently asked questions
What should I do first in a financial crisis?
Map real cash, debt and receivables, then project 13 weeks. Decisions come after the diagnosis, never before.
Should I cut headcount first?
Rarely. Start with avoidable spend, debt renegotiation and faster receivables; structural cuts are a last-stage decision requiring revenue-impact simulation.
How do I renegotiate business debt?
Prioritize by total effective cost, present a realistic cash projection to the creditor and propose terms the operation can demonstrably sustain.