A man looks thoughtfully at a computer monitor in an office environment

Business funding in a crisis

Whether due to economic downturns, unexpected challenges, or a range of other factors, businesses in the UK at risk of crisis or bankruptcy may find themselves in dire need of financial assistance. Fortunately, there are various funding options available to support struggling businesses during tough times. In this article, we will explore some of the key sources of funding that can help businesses weather the storm and get back on the path to sustainability.

Business support organisations

Business support organisations in the UK, such as local chambers of commerce, often provide financial support to struggling businesses. These organisations can offer advice, mentoring, and financial assistance through various grants and schemes. As well as the support we offer at the Growth Hub, you may also wish to look at the British Business Bank, the Federation of Small Businesses, or Funding Circle.

Commercial finance

Beyond government and grant-based options, businesses at risk of crisis or bankruptcy can explore commercial finance solutions. These include:

  • Asset-based lending: Businesses can leverage their assets, such as stock, property or income due, as collateral to secure a line of credit or a loan.
  • Invoice factoring: This option allow businesses to sell their outstanding invoices to a finance company, which provides immediate cash in exchange for a fee.
  • Business loans and credit: Traditional bank loans or lines of credit may be available to businesses that meet their lender’s criteria. Private lenders and online lending platforms can also be considered.

Turnaround specialists

If your business is in severe financial distress or at risk of bankruptcy, it may be advisable to speak to a turnaround specialist or insolvency practitioner. They can provide guidance and financial support to navigate the challenging process of restructuring and recovery. These professionals can help negotiate with creditors, develop restructuring plans, and manage the company’s financial affairs during a crisis.

Facing a financial crisis or the possibility of bankruptcy can be a daunting and distressing experience for any business-owner and their team. But there are a number of potential options available to try and navigate these challenges, and, along with a proper financial plan that plots a path out of the crisis, they can help businesses at risk of crisis or bankruptcy regain stability and thrive once more. If you are in this situation, we encourage you to consult with financial experts as soon as possible.

Learn more

See what sorts of business funding are available

Find out more about managing costs in your business

Articles

Events

29th May 20256:00 pm - 8:00 pm£10

Innovation Supper: Pitch for funding

This event will see 6 new businesses pitch for between £400 – £600 that they can take away on the evening to give their idea the boost it needs. Each business will be given 10 minutes to pitch after which the audience will be invited to ask questions for 10 minutes.

10th June 20257:00 pm - 9:00 pmFREE

June 2025: Strive Live Start-Up Incubator (BSL Interpreted)

If you are currently running or looking to launch a start-up based in York & North Yorkshire, join this award-winning incubator designed to help grassroots entrepreneurs launch their business. Strive Live blends weekly live online training with regular one-to-one advice and on-demand online learning to make it simple and exciting to start a business. Plus, you could win up to £2,500 in micro grants at the end of the programme. This cohort will have British Sign Language (BSL) interpreters present throughout each session.

Resources

Y&NY Growth Hub
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.