The Cash Flow Challenge
Cash is the lifeblood of every business. Yet many profitable companies fail because they run out of cash—a phenomenon known as “overtrading” where growth outpaces available working capital.
The harsh reality: 82% of business failures cite cash flow problems as a contributing factor. Even successful, growing businesses can find themselves caught short when large orders, seasonal fluctuations, or delayed payments create unexpected gaps.
At Oppenheim Advisory, we’ve helped numerous businesses transform their cash flow management from a source of constant anxiety to a strategic advantage. Our practical, hands-on approach delivers results you can see in your bank balance.
Our Cash Flow Management Approach
Cash Flow Forecasting
Accurate forecasting is the foundation of effective cash management. We implement:
13-Week Rolling Forecast: The gold standard for operational cash management. Updated weekly, this forecast shows:
- Expected receipts by customer and timing
- Committed payments and their due dates
- Payroll and PAYE obligations
- VAT and other tax payments
- Discretionary spending you can control
12-Month Strategic Forecast: For longer-term planning, showing:
- Seasonal patterns and their cash impact
- Investment requirements and timing
- Debt service and facility utilisation
- Dividend capacity and timing
Working Capital Optimisation
Your working capital—the cash tied up in debtors, stock, and work-in-progress—is often your biggest source of trapped cash. We help you:
Accelerate Collections:
- Review and tighten payment terms
- Implement effective credit control processes
- Introduce early payment incentives
- Set up automated payment reminders
- Establish escalation procedures for overdue accounts
Optimise Inventory:
- Identify slow-moving and obsolete stock
- Review reorder points and quantities
- Implement just-in-time where practical
- Negotiate consignment or sale-or-return arrangements
Manage Payables:
- Review supplier payment terms
- Identify early payment discounts worth taking
- Establish payment scheduling to preserve cash
- Negotiate extended terms where appropriate
Treasury Management
For businesses with more complex cash needs, we help with:
- Banking relationship management
- Facility structuring and negotiation
- Foreign exchange exposure management
- Investment of surplus cash
- Interest rate risk management
When Do You Need Cash Flow Help?
Consider engaging our services if you:
- Frequently worry about meeting payroll or major payments
- Have limited visibility of cash position beyond a few weeks
- Experience regular overdraft breaches or facility limit approaches
- Miss early payment discounts due to cash constraints
- Struggle to plan investments or take growth opportunities
- Receive pressure from banks about cash flow reporting
- Face seasonal fluctuations that strain liquidity
- Are growing rapidly and finding cash doesn’t keep pace
The Benefits of Professional Cash Flow Management
Businesses we work with typically experience:
Within 30 Days:
- Clear visibility of cash position for the next 13 weeks
- Identified quick wins to improve immediate cash position
- Established weekly cash review process
Within 90 Days:
- Measurable improvement in debtor days
- Reduced reliance on overdraft or credit facilities
- Better decision-making through improved cash visibility
- Stronger relationships with banks and key suppliers
Ongoing:
- Sustainable cash flow management processes
- Early warning systems for potential issues
- Confidence to pursue growth opportunities
- Preparation for investment, acquisition, or exit
Case Study: Transforming Cash Flow
A growing professional services firm came to us with chronic cash flow problems despite strong profitability. Their issues included:
- Debtor days averaging 65 (against 30-day terms)
- No cash flow forecasting beyond checking the bank balance
- Regular overdraft limit breaches
- Inability to take on larger projects due to cash constraints
Over 6 months, we implemented:
- 13-week rolling cash flow forecast updated weekly
- Automated payment reminders at 7, 14, and 21 days
- Credit control escalation process with clear responsibilities
- Revised payment terms for new clients (50% upfront for projects)
- Monthly cash flow review meeting with the leadership team
Results:
- Debtor days reduced from 65 to 38
- Cash collection improved by £180k in the first quarter
- Overdraft eliminated within 6 months
- Now able to take on larger, more profitable projects
Our Approach
We believe cash flow management should be:
Practical: Models and processes that work in the real world, not academic exercises Sustainable: Systems your team can maintain going forward Integrated: Connected to your existing accounting and business processes Actionable: Focus on decisions and actions, not just reports
We typically work on a part-time basis, spending 1-2 days per month on cash flow management once systems are established. This makes professional cash flow management affordable for businesses of all sizes.
Getting Started
Improving your cash flow starts with understanding where you are today. Our initial assessment includes:
- Review of your current cash position and forecasting
- Analysis of working capital and key drivers
- Identification of quick wins and improvement opportunities
- Recommendation for approach and timeline
- Clear proposal for our services
Ready to take control of your cash flow? Book a free consultation or call us on 07990 835891 to discuss your situation.