The importance of your cash flow forecast

In order to create a good impression on lenders and show them that you are a suitable prospect for funding, we need to create a detailed plan that incorporates several important pieces of information about your company. One of the most important aspects of creating a business plan is your cash flow forecast. This is simply a series of predictions relating to the financial incomings and outgoings of your business, based on a series of different factors.

Cash flow forecasts are important for all kinds of businesses; no matter how large or small the company, you need to have a detailed understanding of the amounts of cash flowing in and out of your business, otherwise you are not likely to secure the funding you need to expand or improve your operations.

The forecast can help you to plan how much you expect to make in a given year, how much your outgoings will amount to, and when cash will be entering and leaving your bank account. All of this is essential knowledge when it comes to making financial decisions in your business, for example when deciding whether or not to remortgage or take out a loan. It will also help you to identify areas where you could be saving more money, or aspects of your business that you could potentially change in order to increase your profits.

We will create a three-year cash flow forecast that will be incorporated into your plan, giving you and your lenders an accurate idea of your financial situation for the next few years and helping to determine whether or not you will be able to successfully pay off your debts and run a thriving business.

If you need help putting together a plan that will optimise your chances of obtaining essential hotel, B&B or marine finance, get in touch to work with our experienced team. All you need to do is provide us with the relevant information, and we’ll prepare a comprehensive, professionally finished loan proposal.