Urgent steps when you cannot cover this week's wages
Calculate the actual shortfall before you act
A week arrives when the bank balance will not cover wages. The feeling is immediate and the temptation is to move fast in any direction.
The useful first step is to write down three numbers: the payroll amount due and the date it must clear, the current confirmed bank balance, and the precise shortfall between them.
Confirmed means money already received or cleared, not invoices you hope will be paid or promises from customers. The difference between a guess and a written calculation determines which options are actually available.
Source: Guide to managing cash flow
Chase overdue invoices today, not tomorrow
If money is owed for completed work, contact the person who authorises payments. An email to a general accounts inbox or a site manager often produces no result.
Call directly, explain the invoice and ask when the payment will be processed. Professional persistence is different from waiting and hoping the money appears.
Keep a record of the conversation, the amount discussed and any commitment given. Follow up in writing the same day. This record becomes important if further action is needed.
Talk to your bank while you still have options
Banks respond better to early contact than to missed payments. If you have a business loan or line of credit, the bank may extend the limit temporarily or defer a scheduled repayment.
Prepare the numbers before the call: the shortfall, when you expect incoming payments to arrive and what you are asking the bank to do. Silence or delay usually closes options rather than creating them.
The conversation does not guarantee assistance, but it shows you are managing the situation rather than ignoring it. That difference affects how the bank responds.
Contact suppliers and subcontractors directly
If payments to suppliers or subbies are due this week, call them before the due date. Explain the position and ask whether a short delay is possible.
Most people in the industry understand temporary pressure if you are transparent and specific about timing. What does not work is going quiet, paying nothing and hoping no one follows up.
Agree a revised date in writing and meet it. One managed delay is different from a pattern of broken promises.
Recognise whether this is a one-off or a pattern
A single cash flow shortfall can result from a late payment, an unexpected cost or poor timing. If this is the first time in months, the focus is on solving the immediate problem.
If the same pressure appears every few weeks, the issue is structural. Repeating the same short-term fixes will not resolve a business that consistently spends more than it receives or cannot collect what it is owed.
That pattern requires a different conversation: whether the business model, pricing, customer base or cost structure needs to change. Ignoring the pattern guarantees the problem will return.
Source: AFSA , State of the Personal Insolvency System 2024, 25
Get help with the commercial position now
CRP works with builders, contractors and trade businesses dealing with unpaid debts, cash flow pressure and disputed invoices. Use the contact form below to explain your situation.
Bring the current bank position, the list of amounts owed to you, the contracts and invoices, and any communication about payment. The more accurate the information, the clearer the advice.
Qualified professionals can help you understand your recovery options, assess prospects and address whether the underlying business needs structural attention. Do not let the problem compound while deciding whether to act.