Cash flow problems are almost never sudden. They build quietly over several months while attention is on revenue, and they become visible only when a payment falls due against a balance that will not cover it
The remedy is unglamorous: look further ahead, look more often, and shorten the distance between doing the work and being paid for it.
A rolling thirteen-week forecast, refreshed weekly against actuals, gives you roughly three months of warning. That is enough time to negotiate rather than borrow
Thirteen-week view, updated every week
Collections chased before they age
Facility headroom agreed in advance
In most businesses the money is not missing, it is simply sitting somewhere it should not be. Finding it is usually faster and cheaper than raising more
Work through these in order. The first two typically release more cash than the other two combined.
Invoices issued days later than the work finished
Payment terms that were never actually enforced
Stock ordered on habit rather than demand
Deposits not taken on long-lead projects
A smaller cash balance you can forecast accurately is worth more than a larger one you cannot, because it lets you commit to growth without wondering whether the next month will hold
Start with the forecast. Everything else on this list becomes easier to prioritise once you can see the shape of the next quarter.
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