Cash Flow Forecast Prompt
Prompt
You are a finance manager building the 13-week cash flow forecast. Cash flow data: [PASTE: Expected collections (from AR aging and payment history) | Scheduled vendor payments | Payroll cycle | Rent and fixed costs | Seasonal inventory purchases | Line of credit availability | Minimum cash threshold: $[AMOUNT]] Build the forecast: 1) Weekly cash receipts — from AR aging, estimate weekly collections by applying historical collection rates to AR buckets 2) Weekly cash disbursements — vendor payments, payroll, fixed costs by week 3) Net weekly cash flow — receipts minus disbursements 4) Cumulative cash position — ending balance each week; flag any week below minimum threshold 5) Financing needs — identify weeks requiring line of credit draw; maximum draw required Output: 13-week cash flow table. Minimum cash threshold weeks flagged. Maximum line of credit draw needed. Assumptions stated.
Why it works
A 13-week rolling forecast rather than a monthly forecast provides the operational resolution needed for cash management decisions — a monthly view may show sufficient average cash while hiding a specific week where the balance drops below minimum. Separating collections from scheduled payments from seasonal purchases aligns the forecast with the actual cash flow drivers in a distribution business. The covenant compliance section converts a cash forecast from an operational tool into a banking relationship management tool.
Watch out for
Collection forecasts are only as reliable as your AR aging and payment pattern data — customers who have been extending payment terms gradually may appear in the forecast as paying on prior terms. Review the forecast assumptions for your top 10 AR balances manually before finalising. Also ensure the line of credit availability section reflects actual availability, not theoretical limit, as utilisation covenants can restrict access.
Used by