Start by being precise about the problem
Turnarounds fail to attract funding when the diagnosis is vague. A lender needs to see whether the issue is a margin problem, a working capital problem, a cost base problem or a single contract that went wrong, because each has a different fix and a different funding shape.
Write the diagnosis as a short, specific statement supported by numbers. If you cannot explain the cause in three sentences with figures attached, the plan is not ready to be presented.
What a fundable plan contains
A thirteen week cash flow at minimum, extending to a twelve month integrated forecast. A clear list of actions with owners, dates and quantified effect. A downside case showing what happens if half the benefit lands late.
Include what has already been done. Actions taken and delivered are the strongest evidence available that the remaining plan is credible.
Which structures fit
Receivables and asset backed facilities are the usual route because they lend against realisable collateral rather than forecast profit. A leaseback of owned property or equipment can inject capital without new covenants on trading performance.
Specialist turnaround lenders and private credit funds will lend against a plan, at a price and usually with tight controls, monitoring and sometimes an appointed adviser. That cost is real but it is generally cheaper than the alternative.
Handling the existing lender
Tell them early. Lenders react far worse to surprise than to bad news, and an existing lender who learns of a problem from a third party will assume there is more they have not been told.
Come with the plan, the cash flow and a specific request. A request for a defined amount over a defined period against defined milestones is answerable. An open ended request for support is not.
Frequently asked questions
Can funding be raised while loss making?
Yes, where the collateral or the contracted revenue supports it and the plan is credible. Profit is not the only underwriting basis.
Will personal guarantees be required?
Often, in distressed situations. Take independent advice before giving one.
How fast can turnaround funding be arranged?
Two to six weeks for asset backed facilities where information is ready. Distress compresses nothing except your options.
Last reviewed: 2026-09-06