How should I show my cash inflow

Cashflow Forecast whilst using invoice financing

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We currently use invoice financing to manage our cashflow, the problem I am having is how to record this on my cashflow forecast.

Originally we were showing our forecast sales and calculating when we normally receive receipts, so month one 50% month 2 25% month 3 25% of forecast sales.

Now we are able to draw down 85% of our debtors value with invoice financing, so how should i be showing this in the forecast now.

Obviously we dont always draw the full debtors balance and we have to show in cash outflow what we need to pay back to financing once the funds arrive.

Does anyone know the best way to show this ? Any help would be much appreciated.

 

Thank you in advance

Donna

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RLI
By lionofludesch
02nd Mar 2018 10:16

Record what you expect to receive, which seems to be 85% of sales.

Presumably the other 15% arrives at some point so stick that in whichever month you expect it.

If you got it spot on (and, obviously no-one does), your cash flow forecast would mirror your bank statement. That's what needs to be in the back of your mind.

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