Remove withdrawn funding from the plan immediately, then distinguish contractual questions from the operating decisions that cannot wait.
Corporate Recovery Partners
01 / 06
The expected drawdown has disappeared
A wholesaler orders seasonal stock after receiving an encouraging finance email. Before drawdown, the lender withdraws the offer following a review of the latest accounts. Supplier deposits are now due. The owner believes the lender had promised approval, but has not separated an indicative offer from the documents governing whether funds had to be advanced.
Collect the application, offer, signed facility documents, conditions and withdrawal message. Identify outstanding requirements and the date funds were expected. Ask the lender for its written reason and whether reconsideration is available.
Have a lawyer assess any disputed commitment. A commercial argument about the withdrawal should be based on the actual documents, not the owner’s recollection of a reassuring call.
Remove the funding receipt and list payments already committed against it. Include supplier cancellation terms, deposits, freight and any staff commitments. Government cash-flow guidance supports identifying shortages through revised assumptions.
Flag which payments are legally due, negotiable or not yet committed. Do not assume that cancelling the finance automatically cancels orders placed in anticipation of it.
Ask whether the order can be reduced, staged or delayed by agreement. Check available finance against cost, security, approval conditions and timing. A proposal that arrives after the supplier deadline may not solve the immediate problem.
Avoid signing expensive emergency funding merely to defend the original decision. Compare the cost of a controlled change with the total exposure created by keeping the order intact.
Communicate a factual revised plan to the people managing stock and payments. Stop new commitments that rely on the withdrawn facility while advice is obtained.
If the business cannot meet existing debts without this funding, obtain an urgent solvency assessment. A complaint against the lender and a review of the company’s ability to continue are separate workstreams.
