Cash timing matters
A profitable business can still experience a repayment squeeze if customers pay late or stock absorbs cash. Connect forecast receipts and payments to the proposed debt schedule, existing commitments, tax and investment requirements. Month-end balances may also hide cash pressure within the month.
Test a range of assumptions
Look at a base case and downside scenarios such as lower sales, delayed collections or higher operating costs. We can model different amounts, terms and interest assumptions supplied for the exercise. Those assumptions are not product recommendations or available lending terms.
Understand the result
An agreed model can show projected cash headroom, repayment timing and the assumptions with the greatest effect. Covenant calculations, if required, must use the definitions in the relevant agreement. A forecast depends on its inputs and does not establish affordability or eligibility for a particular loan.