Quick answer
What should a borrowing cash-flow forecast show?
It should show opening cash, realistic receipt dates, operating payments, existing commitments, proposed finance cash flows and the closing balance for each period. Add a second scenario for a plausible delay or reduction in sales. The lowest balance and its date often matter as much as the final total.
Key points
- Use expected payment dates, not invoice dates alone.
- Keep profit, turnover and available cash distinct.
- Include the new advance and the spending it funds.
- Test one or two realistic changes explicitly.
Choose a period that exposes the tight point
If the concern is a bill due in three weeks, a high-level annual total will not show whether there is cash on that date. Use weekly periods for a near-term gap and extend the view far enough to see the intended repayment pattern. Choose a level of detail you can maintain.
Begin with a bank balance reconciled to a known date. Separate cash already committed or restricted from cash available to operate where relevant. Write the forecast date and assumptions at the top so a later reviewer knows what information the plan used.
Use receipt timing rather than sales timing
Place a customer receipt in the period when you reasonably expect it to arrive. For card sales, account for the actual settlement process and relevant deductions. For invoices, consider customer terms and observed behaviour. A sales entry is not automatically money available in the bank.
The British Business Bank’s working capital guidance explains how finance relates to everyday cash needs [1]. Your forecast should connect the specific cause of the gap to its expected resolution. If the company is waiting for invoices, show the receipts individually where they materially affect the result.
Build a small cash table
List operating payments such as suppliers, wages, rent and taxes according to the dates your business expects to pay them. Add existing debt and the proposed schedule. Show the new advance and the project expenditure separately so the apparent cash increase is not mistaken for spare working capital.
In the illustration below, the closing balance of one week becomes the opening balance of the next. The figures are invented and omit many real-business details. Their purpose is to show the calculation, not a recommended level of cash.
| Illustration | Week 1 | Week 2 |
|---|---|---|
| Opening cash | £8,000 | £5,000 |
| Receipts | £12,000 | £10,000 |
| Operating outgoings | £14,000 | £11,000 |
| Finance payments | £1,000 | £1,000 |
| Closing cash | £5,000 | £3,000 |
Add a difficult but plausible scenario
Move a material customer receipt later or reduce the expected sales for a defined period. Keep the change visible rather than reducing every input without explanation. Record which costs remain fixed and which could genuinely be delayed.
Look for the lowest balance and the date it occurs. Then describe a practical response: collecting an overdue invoice, changing purchase timing or reconsidering the project. An unexplained balancing number labelled “extra finance” is still an unresolved funding requirement.
Keep the forecast useful after the enquiry
Compare actual receipts and payments with the forecast and note the reason for material differences. Update remaining assumptions rather than preserving a version that no longer describes the business. This gives the next funding conversation evidence of what changed.
A forecast cannot predict every event or guarantee that repayments are affordable. It can make the assumptions and timing visible enough to challenge. Ask your accountant or adviser to review the actual business model and a proposal where you need help interpreting the result.
Frequently asked questions
Straight answers
Is turnover the same as cash available for a loan?
No. Costs, receipt timing and existing commitments affect the cash remaining.
Should the forecast include the funding advance?
Yes, alongside the expenditure it is intended to fund and all proposed payments.
How often should I update it?
Use a cadence suited to the cash question, and update material changes promptly rather than relying on an obsolete version.
Sources and further reading
Where the external facts come from
Sources checked on 27 October 2026. Provider links are references; they do not imply a partnership or an available offer.
- British Business Bank: working capital finance ↗
Background on working capital and everyday cash needs.
