Is your business overtrading? There could be trouble ahead

POSTED: 3rd May 2016
IN: Guides

Your business’ sudden wave of success could be its Achilles heel. Learn how to spot the early warning signs and avoid the pitfalls that come with overtrading.

Business is booming and you’ve been inundated with new orders. New clients are taken on and you’ve got plenty of potentially lucrative opportunities on the horizon. However, the extra commerce seems to be having a negative effect on your business. So, what’s going on?

Overtrading is a common problem faced by start-ups and small businesses, occurring when businesses struggle to find the funds or resources to adequately service a client before they receive payment. Once a business begins overtrading, their inability to make payments can lead to serious cash flow problems down the line.

However, it is possible to break the cycle. Invoice Finance and Asset Finance can offer a lifeline to rapidly expanding businesses, unlocking tied up capital and giving you access to the funds you need to successfully deliver your service.

To ensure you don’t miss any of the warning signs, here’s our guide to avoiding the dangers of overtrading.


Whatever your business ambitions, relieving your cash flow pressures is a vital step to ensuring healthy business growth. Take a look at our business finance pages to find out more about how Aldermore can support your business.



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