Bridging the funding gap: How insolvency support helps creative, media and tech companies

Published by James Hopkirk on 10 April 2026

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How insolvency practitioners can help manage cashflow and protect investor confidence for CMT companies

In the fast moving creative, media and tech sectors, growth often happens in cycles – intense development, delivery or pitching periods followed by essential waits for the next funding round. Revenue often lands in milestones and even strong businesses can face short‑term cash flow problems.

Cash flow issues can make you feel on edge, especially when funding delays are totally out of a director’s hands. It naturally leads to those nagging thoughts like, “if the funding doesn’t come through soon, are we even doing the right thing by carrying on trading?”

A restructuring professional can offer help to stabilise the situation, protect the underlying business, and keep investor confidence strong while you wait for funds to land.

Understanding the challenges faced by CMT companies

Creative, media and technology companies frequently operate with challenges such as long project lead times, where payment is typically months behind delivery, and high upfront costs in talent, development and production. Income, especially for those in the pre-revenue phase, is often concentrated in milestones or funding events.

All of this makes waiting for funding feel even more tricky and uncomfortable. The perspective of a restructuring professional can give the board comfort to navigate these challenges.

What should directors do during financial pressure?

When you hit a bump in the road it’s best to go back to basics. Directors must act in good faith, promote the success of the company, exercise independent judgment, and use reasonable care and skill. Sticking to these principles can guide you through the difficult periods.

However, should there be any doubt that the company is able to pay all of its obligations, duties can shift towards creditors rather than the shareholders.

To fulfil their responsibilities, directors should:

Monitor the financial position carefully and frequently
Assess the impact of changing circumstances, especially investor delays
Keep clear, detailed board minutes of decisions and the rationale behind them

How a restructuring professional can help directors reduce risk

Bringing in a restructuring professional helps by giving clear guidance on your legal duties and supporting you in reducing the risk of wrongful trading or personal liability.

We can help you:

Hold regular, minuted board meetings: Make sure your board minutes set out why you believe there’s a reasonable prospect of avoiding insolvent liquidation and that any assumptions are challenged constructively.
Consider new credit carefully: Further borrowing might still make sense in certain situations for example, finishing a high‑value project where income is secure.
Decide whether trading should continue: There’s no single legal point where trading must stop. In many cases, continuing will be in creditors’ best interests if there is a reasonable belief that funding is on its way
Stress test your assumptions: Review whether your assumptions would hold up under a worst‑case scenario.

Why early advice matters

For founders and directors in creative, media and tech, involving a restructuring professional early is a proactive step, not a sign of failure. It demonstrates responsible leadership, reassures investors, and could open up solutions that simply aren’t available, should the situation become urgent.

How we can help

At Kreston Reeves, we offer:

Clear diagnosis of your financial position
Tailored, sector aware solutions for your company
Advice to minimise personal liability
Guidance to strengthen investor and stakeholder confidence
Support to avoid common legal and financial pitfalls
Our initial conversation is free and fully confidential.

Click here to find out more about our restructuring and transformation services. You can also contact us to speak to a member of the team to discuss your needs in more detail.

Frequently asked questions about how insolvency support helps creative, media and tech companies

Why do creative, media and tech companies experience cashflow problems?

Creative, media and technology businesses often operate with long project lead times and milestone-based revenue, meaning payment may arrive months after work is delivered. Combined with high upfront costs for talent, development, and production, this can create temporary cashflow pressure even when the underlying business is profitable or growing.

How can an insolvency practitioner help a business facing a funding gap?

A licensed insolvency practitioner can provide professional guidance to stabilise a company’s financial position, help directors understand their legal duties, and explore options to maintain operations while waiting for investment or revenue. Early advice can also help protect investor confidence and support informed decision-making.

What are directors’ duties when a company is under financial pressure?

Directors must act in good faith, exercise reasonable care and skill, and promote the success of the company. However, when a company approaches insolvency, directors’ duties shift towards protecting creditors rather than shareholders. This means monitoring the company’s financial position closely and making decisions that minimise losses to creditors.

What steps should directors take to reduce the risk of wrongful trading?

To minimise the risk of wrongful trading or personal liability, directors should hold regular, minuted board meetings, review up-to-date financial information, and carefully assess the impact of any new borrowing. Decisions should be clearly documented along with the reasoning behind them.

Can a company continue trading while facing financial difficulties?

There is no fixed legal point at which a company must stop trading. In some situations, continuing to trade for a short period may be in creditors’ best interests, for example to complete a profitable contract or collect outstanding payments. Professional advice from a licensed insolvency practitioner can help directors assess whether continuing to trade is appropriate.

Why is it important to seek insolvency advice early?

Seeking advice early allows directors and founders to identify potential solutions before the situation becomes critical. Early involvement of an insolvency practitioner demonstrates responsible leadership, can reassure investors and stakeholders, and may open up restructuring or stabilisation options that are not available once financial pressures become urgent.