The company was profitable on paper and close to running out of cash. Orders had grown 40% in a year; payment terms had not moved, and raw material was being funded from reserves.
The problem
No rolling cash forecast existed. Management reviewed monthly profit, which stayed healthy while the bank balance fell.
What we did
- Built a thirteen-week rolling cash forecast, updated weekly
- Renegotiated supplier terms from 30 to 60 days on two major accounts
- Introduced a structured credit-control process for aged debt
- Arranged an invoice finance facility before it became urgent
- Separated director drawings from operating cash
Outcome
The funding gap closed within four months. The forecast is still maintained weekly.
