2 min read
Definition
A funding gap is the projected cash shortfall over a period — the point in your forecast where the running balance turns negative unless you act.
In plain terms
It is the answer to "how much short am I, and when?" Spotting it three months out gives you options; spotting it three days out leaves only expensive ones.
Why it matters for your company
Most funding gaps are closable by pulling in receivables, stretching payables to terms, or drawing a facility. A pre-agreed credit facility turns a gap into a non-event. Size the funding need with the working capital calculator.
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