Three-way forecasting
A profit forecast on its own doesn't show what happens to your cash or your debt. Banks know this, so many ask for a three-way forecast before they approve a loan.
What we do
We forecast your profit and loss, balance sheet and cash flow together, so a change in one flows through to the others. If you plan to buy a $250,000 machine on finance, the forecast shows the repayments, the depreciation, the interest, and the effect on your bank balance every month.
What you receive
- A 12-month forecast of profit, balance sheet and cash, month by month
- A one-page summary of the assumptions behind it
- A version formatted for your lender, if you need one
Questions
When will the bank ask for one?
Usually for a new loan, a refinance, larger equipment finance, or when you are close to your loan covenants.
A rolling 12-month three-way forecast is included in Growth and Virtual CFO. We update it with your actual results every month and fully reforecast each quarter. A stand-alone forecast, or a finance and lender submission, is quoted as a fixed fee.
See the Growth plan Book a free discovery callOstrand Steel Fabrication
Gross margin up from 24% to 29%, adding about $255,000 of gross profit. On $5.1 million of turnover, each percentage point is worth $51,000. Small jobs either moved to profitable prices or went elsewhere, which freed workshop time for contract work at 32%.
Read the case study →Illustrative example. The business and figures are fictional.
Talk to us about your numbers
Book a free 30-minute discovery call. We'll look at where your business is now, where you want it to be, and whether one of our plans fits. You'll know the fixed fee before you commit to anything.
Or call Ian on 0438 802 531 · enquiries@firmgroundadvisory.com.au