2 min read
Definition
A cash flow forecast lists expected receipts and payments period by period, carrying the running bank balance forward. A 13-week rolling forecast is the working-capital standard.
In plain terms
Profit tells you if the business works; the forecast tells you if you can pay the bills next Tuesday. A profitable company can still run out of cash — the forecast is where you see it coming.
Why it matters for your company
Forecasting the dip early means you arrange finance calmly, not in a panic at 20% APR. Build one with the cash flow forecast calculator, and pre-arrange a standby facility for the trough. See how to build a cash flow forecast.
Frequently asked questions
How far ahead should a cash flow forecast go?
Keep a detailed 13-week rolling forecast for operational control, plus a lighter 12-month view for planning. Update the short one weekly against actuals.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.