Cashflow Projections

You may need cash forecasts for a variety of reasons, from obtaining finance, demonstrating ability to deliver projects to funders, or to understand the pinch points and stresses within your business cycle. 

Understanding your cashflow helps you to garner greater control of your business, and alert you to possible weaknesses or inconsistencies in your budgeting process, as well as identifying where your cash gets tied up, e.g. do you normally hold inventory beyond what is required? . It’s also an important area if you feel you may be at risk of breaching your banking covenant levels.

Our work is not limited to production of a forecast, but we can also advise on the potential to change outbound payment cycles, and reduce receivables recoverability days, as well as review all debtor and creditor contracts currently place. These are issues to consider if cash availability is inhibiting your business growth. And then of course you may need help to convince all stakeholders to support and accept any new arrangements, for your business strategy to succeed. 

We have also helped businesses access both regular invoice discounting and factoring funding into their business cycle each month, by producing cashflow projections that are aligned to expected billing and collections to the customer base. We can also explain and compare for you the different options within these facilities, taking into account how you may be affected by bad debt insurance limits, ledger concentration levels, and billing ceilings.