The short answer
A 13-week cash flow forecast is a rolling view of expected cash receipts, payments and balances. In restructuring planning, it helps management and directors identify cash pressure, test assumptions and connect financing or transaction milestones to available liquidity.
Measure cash timing, not just profitability
An income statement does not show exactly when customers will pay or when cash must leave the bank. A company can have profitable orders and still lack the cash needed to fulfill them. A short-term forecast makes the timing of receipts, payments and funding requirements visible.
Barson Advisory’s approved restructuring FAQs identify credible short- and medium-term cash forecasts, a baseline business plan, alternative scenarios and an execution timeline as important preparation for lender negotiations. A rolling cash forecast supports that preparation; it is not a guarantee of funding or stakeholder agreement.
Establish the opening cash position
Start with reconciled bank information and identify restrictions on the use of cash. Separate available cash from funds that cannot be freely used. The finance team should be able to explain the difference between the bank balance and the cash available for the operating plan.
Map receipts and payments by week using supporting information. Customer collections, payroll, suppliers, debt service and other categories should reflect the business. Avoid importing accrual accounting totals without checking when the related cash is expected to move.
Show assumptions and downside cases
For significant receipts, record the basis for expected timing and the effect of a delay. For payments, distinguish committed amounts from estimates and identify items that need further review. A forecast is more useful when its assumptions can be challenged.
A downside scenario can test slower collections, lower receipts or transaction delays. The aim is to identify the lowest projected cash balance and the point at which action is required. Decisions about payment priorities, lender consent or restrictions should be coordinated with the appropriate professionals.
Create a weekly actual-to-forecast discipline
Update the model using actual receipts and payments, explain material variances and add a new week to the forecast horizon. A missed receipt should lead to a revised assumption, not simply a move into the next column without explanation.
Assign owners for major assumptions. Finance may maintain the model, while operating leaders provide collection expectations, purchasing plans and staffing information. A short weekly review can expose where the forecast and the operating plan no longer match.
Connect liquidity to the board’s alternatives
If a refinancing or sale requires several milestones, place them alongside the cash forecast. Identify the funds needed to reach each stage and the effect of a delay. This makes the negotiation or transaction plan easier to evaluate against the company’s resources.
For directors, a concise reporting package can show available cash, the projected low point, major assumptions, variances and upcoming decisions. The restructuring guide provides the broader framework, while the early-warning checklist helps determine when independent advice may be useful.
Connect the next steps
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General educational information about advisory planning. Engagement scope, conflicts checks, governing documents and advice from the appropriate professionals determine the role in a specific situation.