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 pattern is familiar: a growing business wins bigger orders, hires ahead of revenue, and extends credit terms to larger customers — and the cash gap widens exactly when the business looks most successful. Even profitable companies get caught short when seasonal swings or late payments land together. Managing that gap deliberately is what keeps growth safe.
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 Cash Flow Forecast: For longer-term planning, prepared in the format banks and lenders expect when you apply for a loan or facility, showing:
- Seasonal patterns and their cash impact
- Investment requirements and timing
- Debt service and facility utilisation
- Dividend capacity and timing
Paired with a 12-month P&L forecast, this is the core of a lender-ready funding application.
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
New-Client Vetting and Credit Checks
The cheapest bad debt is the one you never take on. We put a structured vetting process in place so new clients are credit-checked before you offer payment terms: sensible credit limits from the outset, ongoing monitoring, and alerts when a customer’s credit rating weakens so you can act before an invoice is at risk. It is the difference between preventing a problem and recovering from one — as the case study below shows.
Treasury Management
For businesses with more complex cash needs, we take on the treasury disciplines that usually only exist inside much larger companies. That means managing the banking relationship properly — the right accounts, the right facilities, negotiated on evidence rather than habit — structuring overdrafts, invoice finance or term debt to match how cash actually moves through the business, managing foreign-exchange exposure where you buy or sell in other currencies, and putting genuinely surplus cash to work rather than leaving it idle in the current account. It is quiet, unglamorous work that routinely pays for itself in reduced interest, better facility terms and fewer nasty surprises.
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 B2B professional services company had a key overseas client that was not paying their invoices according to terms, with the outstanding balance growing to over £550k. Rapid remedy action was required over concerns whether the debt would be recovered.
- Debtor days averaging 65 against 30-day terms
- Overseas litigation was initiated against the client; full recovery of monies due was obtained, late payment interest was received, and legal fees incurred were fully recovered. The client relationship was maintained.
Over 6 months, we implemented:
- 13-week rolling cash flow forecast updated weekly
- Credit vetting and ongoing monitoring allowing for alerts when client credit limits were reduced
- Automated payment reminders
- Credit control escalation process with clear responsibilities
- Revised payment terms for new clients (with advance payments for external costs)
- Monthly cash flow review meeting with the leadership team
Results:
- Average debtor days reduced from 65 to 30 days
- Cash flow pressures substantially eased
- Robust system implemented
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.