A cash flow forecast lists money in and money out by month or by week and shows when the balance runs short. In the invented cases, a real estate office comes up short in the month a tax bill is due, a landscaping crew runs short for four weeks, starting the week a plant order is paid, and a home builder carries change-order materials until the next draw.
A tax bill in month 3 on an Auburn, AL real estate office’s six-month sheet
Illustration only, invented figures: a real estate office starts with $3,100 in the bank, spends $11,250 a month on salaries, rent and software, and owes a $4,860 tax bill in month 3. Commissions arrive only when closings fund, so they change from month to month:
| Month | Commissions in | Costs out | Balance at month end |
|---|---|---|---|
| Month 1 | $12,400 | $11,250 | $4,250 |
| Month 2 | $8,100 | $11,250 | $1,100 |
| Month 3 | $7,200 | $16,110 | $7,810 short |
| Month 4 | $21,300 | $11,250 | $2,240 |
| Month 5 | $15,800 | $11,250 | $6,790 |
| Month 6 | $12,900 | $11,250 | $8,440 |
In this invented example, the forecast shows the gap before it happens: month 3 ends $7,810 short. A line of credit draw of $7,810 at a 12.35% annual rate, repaid after 30 days from month 4 commissions, costs $79.28 in simple interest, and month 4 still ends with $2,160.72 in the account.
Thirteen weeks of plant stock and crew pay on one sheet for an Auburn, AL landscaping company
Illustration only, invented figures: a landscaping company starts with $6,000, pays its crew $4,180 every week, spends $1,150 a week on fuel, parts and insurance, and pays a $9,740 nursery bill for plant stock in week 2. Customer payments arrive as jobs are invoiced and paid:
| Week | Cash in | Cash out | Balance at week end |
|---|---|---|---|
| Week 1 | $3,900 | $5,330 | $4,570 |
| Week 2 | $4,100 | $15,070 | $6,400 short |
| Week 3 | $9,600 | $5,330 | $2,130 short |
| Week 4 | $2,800 | $5,330 | $4,660 short |
| Week 5 | $6,200 | $5,330 | $3,790 short |
| Week 6 | $11,400 | $5,330 | $2,280 |
| Week 7 | $3,300 | $5,330 | $250 |
| Week 8 | $7,900 | $5,330 | $2,820 |
| Week 9 | $5,600 | $5,330 | $3,090 |
| Week 10 | $10,200 | $5,330 | $7,960 |
| Week 11 | $4,400 | $5,330 | $7,030 |
| Week 12 | $6,900 | $5,330 | $8,600 |
| Week 13 | $8,800 | $5,330 | $12,070 |
In this invented sheet, the balance is short in weeks 2 through 5, by $6,400 at the low point in week 2, and back above zero in week 6. That shape points to a short line of credit draw rather than a long loan, and the sheet ends week 13 at $12,070. Updating the actual figures each week keeps the forecast honest.
Same-day invoices, signing deposits and longer supplier terms: payroll timing for Lee County, AL employers
Of the 3,377 employer establishments in Lee County, AL in 2023, 1,678 had fewer than five employees (County Business Patterns). For a small payroll, one late customer payment can decide whether wages come from the bank balance or from borrowed money. A few levers move the dates:
- Bill each job on the day it is done instead of saving invoices for one run at the end of the month.
- Ask for a deposit when a contract is signed.
- Ask suppliers whether a longer payment window is possible on regular orders.
- Line up the payroll date with the days card or check deposits land.
- Keep a credit line for gaps of weeks and a term schedule for costs that last years.
When the gap is about wages for a few weeks, a working capital loan or a credit line draw can carry it; Hazelbridge passes each request to funding partners, who decide on it.
Change-order gaps and materials for Auburn, AL home builders
Lee County, AL had 105 employer establishments in construction of buildings in 2023 (County Business Patterns), the group that includes home builders.
Illustration only, invented figures: a homeowner approves a change order for upgraded cabinets and tile, and the builder buys $7,480 of materials now, while the owner pays for the change at the next draw, 40 days out. A line of credit draw at a 13.15% annual rate for those 40 days costs $107.79 in simple interest. Inventory financing is another route when the materials are ordered ahead of several jobs.
More business loan articles from Hazelbridge Financial in Auburn, AL
Each article works one invented case from start to finish:
- Financing a food truck with a trade-in: a food truck business trades its older truck toward a newer one, finances the kitchen items apart and works out the payoff still owed on the old truck.
- Battery zero-turns and handheld tool sets: battery mowers priced against gas models and fuel spend, three crews’ handheld tools on a loan or a line, and a used stand-on mower on two terms.
- Lasers, air compressors and supply orders: two soft-tissue laser quotes, an air compressor repair set against a new unit, and a supply order on a credit line.
- Holdback shares on a merchant cash advance: one restaurant’s advance collected at three holdback shares, with the fixed total and what happens when card sales shift to cash.
- Carrying a house between draws: the cash low point before each of three draws, a late draw on a credit line and a forklift on its own agreement.
- Short-term funding on a catering bill: one catering job over 4 or 8 months, on weekly payments and as a line draw, and a mower that needs a longer term.
By Hazelbridge Financial · Updated
