Nick Birchley – Rural Financial Counsellor
A cashflow is simply a projected flow of cash through a business.
It understandable that you cant predict exactly how much the business will produce.
With a projected cashflow you are predicting the income and costs that you evisage for the business within reason.
What are financiers looking for?
Financiers are primarily assessing the businesses ability to effectively service its debts as well as the timing of the finance needs during the business cycle.
The cashflow will be the primary tool that assists financiers when determining the level of overdraft required for the business.
When developing a cashflow a good template can go a long way. You can access a great Cashflow Template created by the GRDC by clicking the link.