A 13-week cash flow forecast built for an invented Jerome County, ID equipment and supply wholesaler, four changes it could test before borrowing, and the inputs a food maker with a few large customers needs for its own forecast.
Building a 13-Week Cash Flow Forecast at a Jerome County, ID Equipment and Supply Wholesaler
A 13-week forecast lists the cash expected in and out of the bank account each week for one quarter. In an invented case, a Jerome County, ID equipment and supply wholesaler starts the quarter with $24,600 in the bank, pays suppliers weekly, payroll every other week and rent every fourth week:
| Week | Customer payments in | Supplier bills out | Payroll and rent out | Net for the week | Cash at week end |
|---|---|---|---|---|---|
| 1 | $18,200 | $9,400 | $4,250 | $4,550 | $29,150 |
| 2 | $17,400 | $21,600 | $11,300 | -$15,500 | $13,650 |
| 3 | $19,100 | $8,800 | $0 | $10,300 | $23,950 |
| 4 | $16,800 | $7,900 | $11,300 | -$2,400 | $21,550 |
| 5 | $14,900 | $10,200 | $4,250 | $450 | $22,000 |
| 6 | $15,300 | $23,800 | $11,300 | -$19,800 | $2,200 |
| 7 | $21,700 | $9,100 | $0 | $12,600 | $14,800 |
| 8 | $18,800 | $8,600 | $11,300 | -$1,100 | $13,700 |
| 9 | $17,600 | $9,900 | $4,250 | $3,450 | $17,150 |
| 10 | $16,200 | $24,300 | $11,300 | -$19,400 | -$2,250 |
| 11 | $22,400 | $8,700 | $0 | $13,700 | $11,450 |
| 12 | $19,500 | $9,200 | $11,300 | -$1,000 | $10,450 |
| 13 | $18,900 | $10,400 | $4,250 | $4,250 | $14,700 |
In this invented forecast, the account dips below zero only in week 10, to -$2,250, when a large supplier bill and a payroll land in the same week. Across the invented quarter, customer payments come to $236,800 against $246,700 paid out, leaving $14,700 in the account after week 13.
Seeing that week in advance turns an overdraft into a choice: ask the supplier to split that invented bill, or plan a short line of credit draw sized to the gap and paid back the following week.
How Jerome, ID Equipment and Supply Wholesalers Can Improve Cash Flow Before Borrowing
Before a draw or a loan, the same invented wholesaler can test changes that move cash without new debt:
- Invoice contractors on delivery instead of at month end: on about $18,000 of weekly invented collections, getting paid one week sooner brings one week of collections in earlier, once.
- Take an early-payment discount only when the cash is there: a 2% discount on an invented $12,600 supplier bill saves $252, but not if paying early forces a draw.
- Sell down slow stock: in this invented case, $7,350 of welding rod and abrasives that has sat on the shelf turns back into cash at a markdown.
- Line up bill dates with the weeks customer payments arrive, so large supplier bills do not land beside payroll.
A forecast that still shows a gap after those changes is the point to look at working capital or a credit line.
Cash Flow Forecast Inputs for a Jerome County, ID Food Maker Selling to a Few Distributors
A food maker selling to a handful of distributors has a forecast that hinges on a few large checks. The inputs it needs, in order:
- Each distributor's payment terms and its real payment dates over recent months, from the bank statements
- Open purchase orders, with the weeks they ship
- Raw material and packaging bills, with the dates each supplier expects payment
- Payroll dates and amounts, including any added shifts for a large order
- Fixed monthly costs, such as rent, utilities and existing loan payments
- The bank balance on the forecast's first day, as the opening cash line
With those six inputs in a spreadsheet, one late check from a single distributor can be tested by moving it a week or two later and watching the balance column.
Posts on Used Rigs, Paint Lines, Plant Kettles and Loan Records in Jerome, ID
Each post below follows invented businesses through one decision, with the payments worked out:
- Used equipment for framing and finish crews: a bid ceiling on a used texture sprayer rig and a rent-or-own count on a material lift
- A paint and hardware store: new paint stock, a tinting machine and a reorder line sized from supplier invoices
- A food plant: a stretch wrapper, a steam-jacketed kettle at two terms and an ingredient bill on a line
- Commercial term loans at a machinery repair shop: how payments split, one loan or two, and four term lengths
- Three quotes on a post driver: a dealer program, a bank and a funding partner for a fence crew
- Records for a loan request: which months of statements, which tax year and a debt list for a striping contractor
By Cobblegrove Business Funding · Updated