Unfortunately, cash crises happen more than they should; let's face it, once is too much. The best thing to do in a cash crisis is to act without delay. The very first thing you need to do is get down to business and draw up a credible plan of management. Don't wait until the creditors are pounding on your door. Schedule meetings with them before the money runs out completely. Then you can help them focus on what they will get, rather than what they will miss out on.

Get help from an accountant and draw up a plan to show your creditors what you are going to do about your cash crisis. While the assessment should be realistic, you don't want it to be so gloomy that investors and creditors panic and refuse to supply the goods you need.

At the same time, never promise something that you won't be able to deliver. If things are bad now, they are not likely to improve any time soon - at least not without hard work. But if you promise stuff that you can't and don't deliver on, then you will destroy that bit of hope and trust that is left. If you can still make a small payment on bills that you owe, it demonstrates good faith on your part and makes creditors feel you can be trusted.

Once you have the meetings set up, behave in an appropriate manner. If you go in biting your nails and looking harassed, it won't exactly inspire confidence. But if you tell them straight out what the problem is and then present a reasonable plan to fix it, then that will be more likely to inspire trust. While you do need to be honest, it's not necessary to reveal absolutely everything - especially if that would prevent your suppliers from dealing with you again. Balance is the key; the problems of the present must be balanced with the hope for the future. In this way you will be able to manage your cash crisis and hopefully, learn from it for the future.