Corporate Cashflow Calculator
The Corporate Cashflow Calculator allows you to forecast your cashflow needs for five years based on your projections of sales, margins overheads and other vital assumptions including how long customers (debtors) will take to pay and when suppliers (creditors) need paying.
The results are not guaranteed, no forecast ever is, but they should be good enough to provide a basis for discussions with funders and/or investors. The results can be emailed to your funders or to FD Solutions who provide Finance Directors for an hour, a day or a week, whatever you need, that can help you secure the funds that you need.
FD Solutions has been doing this for 21 years and is the most established team of FDs in the UK. www.fdsolutions.uk.com
Sales quantities and prices annually for 5 years
Gross profit % (that’s profit per unit as a % of sales price)
4 categories of overheads each with different start months (Development, staff, directors’ pay and general expenses)
Capital expenditure , customer payment terms and supplier payment terms.
VAT can be applied to sales and/or purchases.
*New business set up
You can estimate with a reasonable degree of accuracy how much money you will need in order to start your business. No need to “get it right first time”, as you input the data you can see how much you need, in a clear graphical format, and as you alter the assumptions so you will change the result
*New venture appraisal
As with a completely new business, you can use the App for a new venture in an existing business. So long as you can identify its costs and revenues separately from the rest of the business you can see how much cash it will use or generate. If you will need, say, a few hours extra from some staff then just include the additional (“marginal”) amount that you will spend. The model will add NI on automatically.
Having looked at the cashflow for a new business or a new venture you can share this information with investors. A professionally created and properly prepared cashflow forecast will improve your chances of being funded, dramatically.
You can email it to FD Solutions too and we can discuss the results with you or your potential investors. Just remember that this is a forecast and not a guarantee
*Bank proposal support
The CCC contains enough information for a bank to see not just how much money you need but what security is available in the business to support it. This will reduce or even eliminate the amount of personal guarantee that will be required from the lenders.
*Other funders e.g. invoice factoring/discounting
It is becoming commonplace for businesses to use other forms of finance than bank overdrafts. The information will show these funders the information they need to fund the business too. It is more common for them not to need personal guarantees.
*** Please note - It should be understood that the primary use of the app is UK because it accounts for VAT, PAYE and CT in ways that are specific to UK. ***
Minor tweak when sending email.
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- Last changed:
- Nov 30, 2012
- Digital Software House Plc
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- 3.4 MB