Guide

How to build a 13-week cash flow forecast a practical guide.

A simple weekly forecast shows problems weeks before they arrive. Thirteen weeks covers a full quarter.

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Overview

A simple weekly forecast shows problems weeks before they arrive. Thirteen weeks covers a full quarter.

Set up the grid

Make a spreadsheet with 13 columns, one per week. Add rows for opening balance, each type of deposit, each type of payment and closing balance.

The closing balance of each week becomes the opening balance of the next.

Fill in deposits

Use actual patterns from your statements. List card settlements, customer payments and any other deposits by the week they are likely to arrive, not when the sale happens.

Be conservative. It is better to be pleasantly surprised.

Fill in payments

List payroll, rent, suppliers, loan and advance payments, tax remittances and subscriptions by the week they leave.

Include quarterly and annual items such as insurance and tax instalments in the right weeks.

Find the low weeks

Look for weeks where the closing balance falls near zero or below. Those are the weeks to plan for now.

Moving a supplier payment, chasing a receivable or arranging funding ahead of time is cheaper than reacting.

Update weekly

Replace forecasts with actual numbers each week and add a new week at the end. The forecast stays 13 weeks long and gets more accurate over time.

A forecast also makes funding conversations faster: it shows exactly why, when and how much.

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Keeping it simple

Use round numbers and only the categories that matter. A forecast with ten rows that you update every Monday is far more useful than a detailed model you abandon after a month. Colour the closing balance red when it falls below a buffer you set, such as two weeks of payroll. The red weeks are your action list.

Mistakes to avoid

Building it once and never updating it
Recording sales on the sale date instead of the deposit date
Leaving out quarterly and annual payments

Common questions

Is this advice for my situation?

It is general education. Your file and agreements are specific, so read them and ask questions.

What should I do next?

Gather four months of statements and write what the money is for in one sentence.

Can you help me apply?

Yes. Apply once and the file is matched to the structure that fits.

Keep reading

GuidesPractical guides for Canadian owners GlossaryPlain-language definitions Funding requirementsTypical starting points for Canadian files Documents you needWhat to have ready before you apply Funding use casesPayroll, inventory, expansion and more

Educational information only. It is not legal, tax or accounting advice.

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