A 13-week cash flow forecast lists every dollar expected in and out, week by week, for one quarter. It uses the direct method, counting actual receipts and disbursements. Each week it rolls forward. Drop the week that just closed, add a new week 13, and compare last week's forecast to actual.
Lenders look first at the lowest point of liquidity. Set the drivers below, then type over any cell in the matrix to override it. Overridden cells turn amber. All figures are in $K for a fictional $50M distributor.
DriversChange any input; the chart and matrix update
Liquidity
Sales and working capital
Fixed and scheduled payments
Lowest liquidity
Lowest ending cash
Peak revolver balance
13-week net cash flow
Where the numbers come from
Customer collectionsSales from DSO ÷ 7 weeks earlier. You collect today what you sold about six weeks ago.
Supplier paymentsCost of goods for sales DIO ÷ 7 minus DPO ÷ 7 weeks ahead, where DIO (days in inventory) = 365 ÷ inventory turns. You buy stock before you sell it, then pay for it on terms.
PayrollPaid in weeks 1, 3, 5 and every other week after.
Rent and interestRent lands in the week ending on day 1 to 7 of a month. Interest lands in the last week ending in each month.
Revolver draw or (repayment)Draw = minimum cash − cash before the revolver, capped at availability. Sweep repays anything above minimum cash.
Total liquidityEnding cash + revolver availability. This is the number lenders watch.