How to Free Up Cash in Your Business in 2026 (Without Selling More)

A Practical 7 Point Checklist to Improve Cashflow Without Selling More

Everything I share below comes from real life experience gained through arranging finance, speaking with hundreds of business owners, and running my own business day to day.

I’m genuinely passionate about finding smart, simple ways to improve cashflow and working capital. Not through gimmicks, but by solving meaningful problems and untangling complex challenges.

I hope you find something useful here.

1. Consolidate Short-Term Business Loans and Debt

Let’s start with the obvious and as a finance broker, I’d be doing myself a disservice not to.

Short-term business loans add up quickly. Before you know it, you’ve got repayments leaving the account in multiple directions every month.

The good news is that if you’ve been managing those repayments well, there’s often an opportunity to consolidate them.

Banks and lenders will look closely at repayment history. If you already have £3,000–£4,000 going out each month, it’s often worth reviewing the cost of that debt, not just the balance.

Some loans may be on higher rates and allow early settlement without penalties. If that’s the case, there may be an opportunity to replace multiple short-term loans with a single facility which is structured over a short, medium, or longer term.

Done properly, consolidation can:
• Reduce the interest rate
• Lower the monthly repayment
• Or improve cashflow by doing both

The key is structure. This isn’t about borrowing more. It’s about making existing debt work harder for the business.

2. Use AI to uncover silent costs hiding in your business

Over time, most businesses build up “silent costs” such as subscriptions, services, utilities, software, insurance, mobile contracts, that quietly roll on without scrutiny.

The issue isn’t knowing they exist. It’s finding the time to review them properly.

This is where tools like ChatGPT can be surprisingly useful.

For example, you can:
• Paste in a list of recurring expenses from your bank or accounting software and ask ChatGPT to group them, highlight patterns, and flag anything that looks high or duplicated
• Ask it to suggest which categories are most likely to be over-priced or worth reviewing first
• Ask it to research typical market pricing and alternative providers in the UK
• Use it to create a simple “renewal watchlist” so contracts don’t quietly auto-renew at higher rates

If a cost hasn’t been reviewed in two years, it’s probably not competitive and you might be surprised what you’re still paying for.

This is really just scratching the surface. There are plenty of sensible ways AI can be used internally to save time and reduce costs... And no, I’m not suggesting you replace Mary from accounts with a chatbot.
(Nothing personal, Mary.)

3. Don’t manage your business using last month’s numbers

Most business owners still rely on monthly management accounts or a P&L that tells them what already happened.

The problem is cashflow pressure usually builds quietly, weeks before it shows up in the numbers.

A simple enhancement I’m seeing more often is incorporating:
• A rolling 13-week cashflow view
• Weekly “cash in vs cash out” check-ins
• And decisions based on forward visibility

This doesn’t require complex software. A basic spreadsheet updated weekly is often enough.

The benefit isn’t just better cashflow. It’s better sleep and fewer reactive decisions.

4. Turn Existing Assets into Working Capital

Your business might be asset-rich but cash-tight.

Vehicles, machinery, equipment and even assets bought outright years ago, often sit on the balance sheet doing their job operationally, but contributing nothing to cashflow.

In some cases, it’s possible to refinance assets you already own to release capital that’s tied up.

I’m not trying to incentivise you to take on unnecessary debt. It’s more about recognising that idle capital can sometimes be put to better use elsewhere in the business, like smoothing cashflow, funding growth, or creating a buffer.

When used deliberately, this can be one of the least disruptive ways to improve working capital.

5. Planning for HMRC Payments Strategically and Not Reactively

I’m seeing more and more businesses use Time to Pay with HMRC, often a cashflow tool.

Planned arrangements, put in place early and structured properly, tend to reduce stress and preserve options. Reactive arrangements, made under pressure, usually limit flexibility and invite scrutiny.

Understanding when to engage with HMRC, how to plan around VAT and corporation tax, and how this fits into your wider cashflow picture can make a meaningful difference.

As with most things in business, calm decisions made early tend to deliver better and more cost-effective results than panicked ones.

6. Review Payment Terms on Both Sides of The Business

Payment terms rarely get much attention. Most businesses focus on price and margins, then accept whatever terms are already in place.

Over time, that creates friction you don’t always notice:
• Customers paying weeks after the work is done
• Suppliers wanting paying much sooner
• And your business quietly bridging the gap

A small reset can make a big difference.

That might mean:
• Asking for a deposit before work starts
• Moving from 60 days to 30 where it’s reasonable
• Rewarding faster payers rather than chasing late ones
• Or having an honest conversation with suppliers about timing

You don’t need to overhaul everything. One or two sensible changes can noticeably ease pressure on cashflow.

7. Simplify to Scale

I see this a lot and I include myself in this.

Business owners diversify for good reasons… Opportunity, risk reduction, curiosity, ambition. None of that is wrong. But too often, diversification comes at the cost of focus, time, and headspace.

What looks like progress on paper can quietly dilute attention in practice.

“The businesses that scale best are the ones that focus their effort where it creates the biggest return. Spread that effort too thin, and nothing compounds properly.”

Diversification often feels smart. It gives us optionality and comfort. Even when it makes execution harder and decisions noisier.

In 2026, my bet is that clarity will be a competitive advantage.

That means getting clear on:
• What actually drives results in your business
• What you’re optimising for right now
• And what can wait

Be clear on what really matters first. Put your energy there and give it the time it needs to work. Once that’s established, you can decide what else deserves attention.

Most good ideas don’t disappear. They’re usually still there when the timing is right.

These aren’t radical ideas from me here...

Clear thinking, early decisions, and a willingness to simplify tend to make business feel lighter and more controllable over time.

I hope you’ve found this useful and best wishes for the year ahead!

Thanks for reading

James

Need Help Understanding Your Options?

James Murray Finance helps UK business owners arrange business loans, asset finance, and refinancing solutions every day, with clear explanations around what’s required and how to keep personal risk to a minimum.

If you’re exploring finance and want to know when a personal guarantee might apply (and when it might not), get in touch today.

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Disclaimer: This blog post is intended for informational purposes only and does not constitute financial advice. All information is collated at time of writing and the best efforts have been made to ensure accuracy.