How to extend your cash runway

2 min read

Cut burnProtect revenue-driving spend

Pull cash inChase, deposit, discount

Add cashFinance or investment

Step 1 — measure it honestly first

Before acting, know your real runway: usable cash divided by conservative monthly net burn. Use your worst realistic assumptions, not your hopes. Knowing whether you have three months or eight changes everything about how aggressively to act — and stops you either panicking early or leaving it too late.

Step 2 — cut burn without cutting revenue

The fastest lever is usually spending. But cut carefully: protect anything that generates income and target the rest — discretionary projects, non-essential subscriptions, deferrable capital spend. Renegotiate supplier terms and pause hiring rather than slashing sales activity. Every pound of monthly burn you remove extends the runway proportionally, so this often buys the most time fastest. See how to cut costs without hurting revenue.

Step 3 — pull cash in sooner

Accelerate every receipt you can. Chase overdue invoices hard, offer a small early-payment discount for immediate settlement, ask for deposits or stage payments on new work, and invoice the moment work is done rather than at month-end. Clearing slow-moving stock releases cash too. None of this is new revenue — it is simply pulling forward cash you are already owed. See how to speed up customer payments.

Step 4 — add cash while you still can

If cutting and collecting are not enough, add cash — through finance or investment. Crucially, do this while your runway still gives you a choice: a lender or investor is far more comfortable with a business that approaches them at four months than four weeks. Arranging finance early, from a position of relative strength, gets better terms and a calmer process.

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.

Step 5 — fix the underlying cause

Extending runway buys time to fix the real problem, not to postpone it. Use the weeks you have won to address why the business was burning cash — thin margins, slow debtors, overheads too heavy for the revenue. Runway extension is a bridge to a fix, not the fix itself. Watch for the red flags that got you here.

Frequently asked questions

What's the fastest way to extend runway?

Usually cutting burn, because every pound of monthly spend removed extends the runway proportionally and takes effect immediately. Just protect the spending that generates revenue while you cut the rest.

When should I raise finance?

While your runway still gives you a choice — ideally with several months left. Lenders and investors are far more comfortable with a business that approaches them early, and you'll get better terms and a calmer process.

Does extending runway solve the problem?

No — it buys time to solve it. Use the weeks you win to fix the underlying cause, whether that's thin margins, slow-paying customers or overheads too heavy for the revenue.