Quick answer
When a major contract ends suddenly or a big customer collapses, map the cash hole week by week, cut or pause costs you can, chase every dollar owed, and lodge any claim with an administrator. Then fund a bridge long enough to replace the revenue. Property-secured loans suit longer bridges and larger amounts; unsecured cash-flow loans suit shorter gaps, sized on your recent turnover.
Key points
- The first job is a 13-week cash forecast so you know how deep and how long the hole is.
- If a customer has entered administration or liquidation, lodge your claim with the appointed practitioner.
- A bridge loan should be sized to the time it realistically takes to replace the work.
- Apply for funding while recent bank statements still show the lost revenue — it can help.
- First tool
- 13-week cash forecast
- Short gap
- Unsecured cash-flow loan
- Long bridge
- Property-secured second mortgage
Why does losing one customer feel like the floor falling out?
Concentration risk is easy to ignore while it’s working. A cleaning company with one large commercial client, a manufacturer supplying a single retailer, a labour hire firm with most of its workers on one site, a builder relying on one developer — each can run profitably for years. Then the contract isn’t renewed, the customer is bought out, or the customer goes into administration owing you three months of invoices.
Overnight, the business has the same costs and a fraction of the income. Worse, if the customer collapsed, you may be owed a large sum you won’t see for months, if ever.
What should I do in the first 48 hours?
- Build a 13-week cash forecast. Week by week: cash in, cash out, closing balance. It shows how deep the hole is and when it bottoms out.
- Separate the two problems. Lost future revenue is one; money already owed is another. Both need different plans.
- Lodge your claim if the customer has entered administration or liquidation. Check for retention of title on goods supplied but not paid for.
- Talk to your team. If you need to reduce hours or roster changes, get advice on your obligations first.
- Pause discretionary spending and talk to suppliers before you fall behind, not after.
- Start pitching to replacement customers immediately. Your network is your fastest sales channel.
How long a bridge do I need?
The right loan depends on how long it will realistically take to replace the revenue, not how long you hope it takes.
| Gap | Typical route | Notes |
|---|---|---|
| 1–3 months | Unsecured short-term business loan or cash-flow loan | Sized on turnover; same day possible for smaller amounts |
| 3–12 months | Property-secured second mortgage | $20k to $5m; up to $5m possible within 24–48 hours |
| Recurring lumpiness | Line of credit | Draw when needed, repay as new work lands |
| Owed by collapsed customer | Bridge against expected dividend is uncertain | Don’t rely on recovery to repay — plan another exit |
Applying sooner can help. Unsecured lenders assess recent bank statements; while those still show strong turnover, your options are wider. Wait three months and your statements will tell a different story.
Illustrative example: a commercial cleaner loses a building
Illustrative only. A Sydney commercial cleaning company earns about 40% of its revenue from one office tower. The building is sold and the new owner brings in its own contractor with 30 days’ notice. The company’s forecast shows a cash shortfall for about four months while it wins replacement contracts.
The director owns a home with equity. The company arranges a $180,000 second mortgage to cover four months of reduced revenue while it keeps its best staff and tenders for new work. Within five months it has won two smaller contracts that together replace most of the lost income, and the loan is repaid from improved trading plus a refinance.
What lenders will ask
Expect questions about what happened, what the business looks like without the lost customer, and your plan to replace the revenue. A short written summary, your 13-week forecast and a list of new work in the pipeline go a long way. Your exit strategy — how the loan gets repaid — matters more than ever here.
If the lost customer also owes you money, our page on a customer who didn’t pay covers recovery.
Which costs should I cut, and which should I keep?
When revenue drops suddenly, the instinct is to cut everything. That can make it harder to replace the lost work. A better approach is to sort costs into three groups:
| Keep | Pause | Cut |
|---|---|---|
| Key staff who win and deliver work | Discretionary marketing not producing leads | Services only the lost customer needed |
| Equipment and systems you’ll need for new clients | Non-urgent upgrades and purchases | Excess capacity with no prospect of use |
| Insurance, tax and compliance | Some subscriptions and memberships | Duplicated or idle leases where possible |
The bridge loan should cover the “keep” column long enough to win new work. That’s the point of borrowing — to keep the capacity that lets the business recover.
Buy the time to rebuild
The businesses that survive losing a big customer usually move fast and borrow sensibly. Start a 60-second enquiry while your statements still reflect your full trading.
There’s no credit check at the enquiry stage, and we won’t spread your details around a pile of lenders. A real person works on your file and calls you back with one route. Be accurate about your revenue with and without the lost customer, and how long you think it will take to replace — it helps us size the bridge properly. Find out what’s possible.
Frequently asked questions
Should I borrow after losing a big customer?
Only if the business is viable without that customer or can realistically replace the revenue. A bridge loan buys time to win new work and restructure costs; it shouldn't just postpone a problem.
My customer went into administration — will I get paid?
You'll usually become an unsecured creditor. Lodge a proof of debt with the administrator or liquidator and check whether you have retention of title or other security over goods supplied. Recovery is often partial and slow, so plan as if you won't see it soon.
Why apply for funding sooner rather than later?
Unsecured lenders look at recent bank statements. Applying while those statements still reflect strong trading can make approval easier than waiting until several weak months have passed.
What if I have no property?
Unsecured, cash-flow and line-of-credit options are typically $5,000 to $500,000 for trading businesses. The amount depends on turnover and how the lender views your revenue without the lost customer.