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13-Week Cash Flow Forecast Template (Direct Method)

Direct-method weekly cash forecast: opening cash and facilities, receipts and disbursements by category, weekly roll, headroom vs minimum, variance and bridge, levers

वित्त, निवेश और लेखांकनपूर्णCorporate treasury practice (direct method); IAS 7 (name only)weekcashflowforecastmath
एडिटर में खोलें.md डाउनलोड करें

उपयोग कैसे करें: Use it when managing short-term liquidity, preparing for a lender waiver or refinancing, or running a turnaround. Fill the opening bank balances, committed facilities and payment calendars first, then roll the forecast every week against actuals. The main pitfall is an indirect forecast split into weeks, which hides payroll and tax troughs and never learns from timing versus permanent variances.

प्रीव्यू

13-Week Cash Flow Forecast: [Organisation name] [Cycle, e.g. CF13-2027-01]

Direct-method weekly cash forecast for the next 13 weeks: opening cash and facilities, receipts by source, disbursements by category, the weekly roll from opening to closing cash, liquidity headroom against the policy minimum, variance to the prior forecast, key assumptions, risks and mitigating levers. Written as original practice guidance for corporate treasury and finance teams; no accounting standard prescribes the format, and lenders often set their own content in facility agreements, waivers or restructuring terms. Replace every [bracketed] value and every row marked Example. This is a document format, not financial, investment, tax, legal or accounting advice.

Document control

FieldValue
Document ID[CF13-YYYY-NN] Example: CF13-2027-01
Organisation and perimeter[Group / entities included] Example: Corvid Commerce Group, all four operating entities and the holding company
Cash cut-off (opening balance date)[YYYY-MM-DD] Example: 2026-12-31, bank close
Forecast horizon[Week 1 to week 13, dates] Example: weeks ending 2027-01-08 to 2027-04-02
Week definition[Saturday to Friday / Monday to Sunday] Example: Saturday to Friday, weeks named by the Friday
Currency and units[EUR thousand, at forecast rates] Example: EUR thousand; USD, GBP and VND flows at the treasury forecast rates of the cycle
Prior cycle[Document ID] Example: CF13-2026-52
Distribution[Internal / lenders under the facility agreement]
Version[0.1]
Status[Draft / In review / Approved / Superseded]
Owner[@group-treasurer]
Approvers/reviewers[@cfo], [@financial-controller], [@entity-finance-leads]
Last updatedYYYY-MM-DD
Classification[Confidential]
Model file[Path and version]

Approvals

RoleNameDecisionDate
Group treasurer (preparer)[@name][Submitted]YYYY-MM-DD
Financial controller (reviewer)[@name][Reviewed, actuals agree to bank]YYYY-MM-DD
Chief Financial Officer[@name][Approve / Return]YYYY-MM-DD

Revision history

VersionDateAuthorChange summary
0.1YYYY-MM-DD[@name]Entity submissions consolidated
0.5YYYY-MM-DD[@name]Example: Payroll timing moved after the HR calendar check
1.0YYYY-MM-DD[@name]Example: Approved by the CFO and shared with the facility agent

Contents

1. Purpose, basis and ownership

Example: Corvid Commerce Group prepares the 13-week forecast every week as its primary short-term liquidity tool. It shows whether cash plus undrawn committed facilities stays above the treasury policy minimum, tells the treasurer when to draw or repay the revolving credit facility, and gives the CFO early warning when a lever (deferring capex, accelerating collections) is needed. The group is not in financial difficulty and no lender requires the forecast today; it is shared with the facility agent only on request.

ItemChoice for this forecastWhy it matters
MethodDirect method: forecast bank receipts and payments line by lineShows timing that an income-statement-based (indirect) forecast hides
Horizon13 weeks, rolled weeklyOne quarter covers a full payroll, VAT and supplier cycle
GranularityWeekly totals per entity, consolidated in EURDaily is too noisy beyond two weeks; monthly hides the payroll trough
PerimeterAll bank accounts of the group, including cash that cannot be moved freelyHeadroom must not count trapped cash as available
Sign conventionReceipts positive, disbursements shown as positive amounts and deductedAvoids double negatives in the weekly roll
Link to longer forecastsReconciles to the first quarter of the Rolling Forecast within [EUR 500k]Keeps the short and medium views consistent

1.1 Roles

RoleResponsibility
Group treasurerOwns the model, consolidates entity inputs, reports headroom and proposes facility draws
Entity finance leads (Germany, UK, US, Vietnam)Submit receipts and payments for their entity by [Tuesday 12:00] each week, explain their variances
Credit controlProvides the collection forecast by customer group and the overdue list
Accounts payableProvides the payment-run schedule and any supplier term changes
Payroll and taxProvide payroll dates, gross-to-net cash amounts and tax due dates
Financial controllerReviews actuals against bank statements and challenges assumptions
CFOApproves, decides on levers, escalates to the board when the downside case breaches the minimum

1.2 When a lender or adviser requires the forecast

Lenders usually ask for a 13-week forecast in three situations: when a covenant is close to breach and the borrower requests a waiver or an amendment, when a facility is being refinanced under pressure, and in a formal restructuring where a financial adviser reviews the business for the lenders. In each case the forecast stops being an internal management tool and becomes information the borrower has promised to deliver. Treat it accordingly:

  • Agree the format, the reporting day, the variance thresholds that need explanation and the definition of liquidity with the lenders in writing, and keep to them every week.
  • Keep a clean distinction between the base case you believe and any case you are asked to run for the lenders. Label every version.
  • Expect the reviewing adviser to test opening balances against bank statements, receipts against customer history and payments against payment runs. The controls in section 10 exist so that this review finds nothing.
  • Never change the forecast to hide a shortfall. A forecast that later proves to have been optimistic on purpose destroys the trust that a waiver depends on.

When no lender requires the forecast, keep the same discipline anyway. The organisations that cope best with a sudden lender request are those that already run the forecast every week.

2. Opening cash and facilities

2.1 Opening cash by entity

EntityCurrencyBank balance (local)RateEUR thousandFreely available?
Corvid Commerce Group plc (parent, EUR cash pool header) (Example)EUR14,900k1.0014,900Yes
Corvid Commerce GmbH (Germany)EUR3,200k1.003,200Yes, swept daily
Corvid Commerce Ltd (UK)GBP2,580k0.863,000Yes, swept weekly
Corvid Commerce Inc (US)USD6,160k1.105,600Yes, USD account in pool
Corvid Commerce Vietnam LLCVND37,050m28,5001,300For local payments only: profit remittance subject to local rules
Group28,000

Check: 14,900 + 3,200 + 3,000 + 5,600 + 1,300 = 28,000. 2,580 / 0.86 = 3,000; 6,160 / 1.10 = 5,600; 37,050,000k / 28,500 = 1,300k.

Reconciliation to the ledger (EUR thousand)Amount
Group cash per general ledger at 2026-12-31 (Example)27,650
Add: supplier payments issued but not yet debited by the bank500
Less: customer card settlements recorded but not yet credited(150)
Bank balance used as opening cash28,000

Check: 27,650 + 500 - 150 = 28,000.

2.2 Committed facilities

Facility IDFacilityCommitmentDrawnUndrawnFinal maturityConditions to draw
FAC-001 (Example)Term loan, bullet30,00030,00002028-06-30Fully drawn
FAC-002 (Example)Revolving credit facility20,000020,0002028-06-30Repeating representations true, no default, utilisation request [3] business days ahead
FAC-003 (Example)UK overdraft, uncommitted1,00001,000On demandBank may withdraw at any time: excluded from headroom

Committed undrawn facilities counted in headroom: 20,000 (FAC-002). The treasury policy counts a committed facility only while more than 12 months remain to its maturity. FAC-002 therefore qualifies up to 2027-06-29 and drops out on 2027-06-30, when exactly 12 months remain. That date is inside the horizon of every cycle from CF13-2027-14 (weeks ending 2027-04-09 to 2027-07-02) onwards, which is why refinancing by 2027-06-30 is planned in Liquidity and Funding Plan (finance/liquidity-funding-plan).

Trapped cash is deducted from headroom. At 2026-12-31 the group deducts EUR 1,000k: a balance held by Corvid Commerce Vietnam LLC (CC-VN) that cannot be remitted or swept to the group under local rules (check local law), the same amount the Treasury Policy, the Annual Budget and the covenant certificate exclude. The rest of the Vietnam balance (300) is used for CC-VN's own payments in the horizon (section 5.2). Keep the deduction at 1,000 in every week unless the local finance lead confirms a change, and deduct any other balance that cannot be moved.

3. Receipts forecast

Receipt IDSourceBasis of forecast13-week total (EUR thousand)Confidence
RCT-001 (Example)Subscription customers (card and direct debit)Billing run on the first day of each month; card settlement two to three days later; 15% of value billed in arrears to enterprise customers on 30-day terms22,700High
RCT-002 (Example)Commerce marketplace payoutsMarketplace settlement calendar (weekly payout, seven days after delivery), net of marketplace fees11,500Medium
RCT-003 (Example)Professional services invoicesOpen invoices by due date plus observed average delay of [9] days; new invoices from the project billing plan2,600Medium
RCT-004 (Example)Other: Vietnam VAT refund (W07), interest on deposits (W13)Refund claim filed; bank interest statement400Low for the refund, high for interest
Total37,200

Check: 22,700 + 11,500 + 2,600 + 400 = 37,200.

3.1 Building the collection curve

A collection curve converts what is billed into what is received, week by week. Build it from history rather than from contract terms: take the last six to twelve billing cycles, measure the share of each cycle's value received in the first week after billing, the second week and so on, and average the shares. Keep separate curves for groups that behave differently, for example card customers, direct debit customers, enterprise customers on invoice terms, and marketplaces with their own settlement calendars. Revisit the curve every month and whenever something structural changes, such as a new payment provider, a price rise or a change in the mix of customers.

Watch for three common distortions. Month-end and quarter-end customers often pay in batches, so a weekly average hides peaks. Public holidays move bank settlement days, which shifts receipts between weeks without changing the total. Customers under stress pay later than their history suggests, so overlay judgement from credit control on any customer that is on watch.

Guidance for each source:

  • Recurring receipts. Forecast from the billing calendar and the collection curve (share of billed value collected in week 1, 2, 3 after billing). Update the curve monthly from actual collections.
  • Large single receipts. List any receipt above [EUR 250k] individually with the customer, invoice and the person who has confirmed the date.
  • Overdue balances. Do not forecast overdue receivables older than [60] days unless credit control has a written payment commitment.
  • Non-operating receipts. Asset sales, tax refunds, grants and insurance claims go in only when the amount and date are confirmed in writing; otherwise show them as upside in section 9.

4. Disbursements forecast

Payment IDCategoryBasis of forecast13-week total (EUR thousand)Type
PAY-001 (Example)Payroll, including employer social charges and payroll taxesThree monthly payrolls (27 January, 26 February, 30 March) of 4,300 each12,900Committed
PAY-002 (Example)Suppliers: inventory and cost of salesWeekly payment run on Thursday from the AP due-date report; supplier finance programme invoices paid by the bank on the extended date11,600Committed for approved invoices, controllable for new orders
PAY-003 (Example)Operating expenses: hosting, marketing, rent of short-term space, professional feesPurchase orders and contract schedules4,200Partly discretionary
PAY-004 (Example)Taxes: VAT (monthly, around the 10th) and corporate income tax instalment (March)Returns filed and instalment notices2,600Committed (statutory)
PAY-005 (Example)Debt service: lease payments (monthly, on the fifth business day: 8 January, 5 February, 5 March) and term loan interest (quarterly, 31 March)Lease schedules; FAC-001 at 4.0% on 30,000 for one quarter750Committed (contractual)
PAY-006 (Example)Capital expenditure: platform development milestones and warehouse equipmentApproved capex requests and milestone dates2,600Discretionary until contracted
Total34,650

Check: 12,900 + 11,600 + 4,200 + 2,600 + 750 + 2,600 = 34,650. Debt service: lease 3 x 150 = 450; interest 30,000 x 4.0% / 4 = 300; total 750. The April lease falls on 2027-04-07 (the business days are 1, 2, 5, 6 and 7 April) and therefore in W14, outside this horizon. Taxes: VAT 3 x 600 = 1,800 plus corporate income tax instalment 800 = 2,600.

Items checked and not in this horizon (Example): dividend (paid after the annual general meeting in May), revolving facility commitment fee (paid in June and December), annual insurance premium (paid in July), sales bonuses (paid in April after the year-end close is approved).

4.1 Payment calendar discipline

Most of the disbursement forecast is a calendar exercise. Collect the dates once, keep them in one place and update them as soon as anything changes: payroll dates per country, the supplier payment-run day, statutory tax due dates (VAT, payroll withholding, corporate income tax instalments), rent and lease dates, debt service dates from each facility agreement, insurance renewals and any annual or quarterly item such as bonuses or licence renewals. When a due date falls on a weekend or public holiday, record the actual bank date, not the nominal one.

Supplier payments deserve the most attention because they combine a known part (invoices already approved, due on known dates) with an estimated part (invoices not yet received for goods and services already ordered or expected). Forecast the known part from the accounts payable due-date report and the estimated part from open purchase orders and the cost forecast. Agree with accounts payable that no payment is released outside the scheduled run without treasury being told, otherwise the forecast cannot be trusted at the weekly level.

5. Weekly roll

The roll for every week tt follows one identity, and liquidity headroom adds undrawn committed facilities that meet the policy test:

Ct=Ct−1+Rt−DtHt=Ct−Tt+FtundrawnMt=Ht−Hmin⁡C_t = C_{t-1} + R_t - D_t \qquad H_t = C_t - T_t + F_t^{\text{undrawn}} \qquad M_t = H_t - H^{\min}

where CtC_t is closing cash, RtR_t receipts, DtD_t disbursements, TtT_t trapped cash (1,000 in every week of this cycle, see section 2.2), FtundrawnF_t^{\text{undrawn}} undrawn committed facilities with more than 12 months to maturity at the end of week tt, Hmin⁡H^{\min} the policy minimum, and MtM_t the margin over the minimum.

Example: Corvid Commerce Group, CF13-2027-01, EUR thousand. Policy minimum headroom Hmin⁡H^{\min} = 35,000; undrawn committed facility = 20,000 and trapped cash = 1,000 in every week, so headroom = closing cash + 19,000.

WeekWeek endingReceiptsPayrollSuppliersOpexTaxDebt serviceCapexTotal disbursementsNet flowOpening cashClosing cashHeadroomMargin over minimum
W01 (Example)2027-01-083,40001,100400015001,6501,75028,00029,75048,75013,750
W022027-01-152,6000800300600001,70090029,75030,65049,65014,650
W032027-01-222,4000800300009002,00040030,65031,05050,05015,050
W042027-01-292,8004,3001,0003000005,600(2,800)31,05028,25047,25012,250
W052027-02-053,5000900350015001,4002,10028,25030,35049,35014,350
W062027-02-122,6000800300600001,70090030,35031,25050,25015,250
W072027-02-192,6000800300008001,90070031,25031,95050,95015,950
W082027-02-262,8004,3001,0003000005,600(2,800)31,95029,15048,15013,150
W092027-03-053,5000900350015001,4002,10029,15031,25050,25015,250
W102027-03-122,60008003001,400002,50010031,25031,35050,35015,350
W112027-03-192,4000800300009002,00040031,35031,75050,75015,750
W122027-03-262,80001,0003000001,3001,50031,75033,25052,25017,250
W132027-04-023,2004,300900400030005,900(2,700)33,25030,55049,55014,550
Total37,20012,90011,6004,2002,6007502,60034,6502,55028,00030,550

Checks on the roll:

  • Column totals agree to sections 3 and 4: receipts 37,200; disbursements 34,650.
  • Net flow over 13 weeks: 37,200 - 34,650 = 2,550; closing cash 28,000 + 2,550 = 30,550, equal to the W13 closing balance.
  • Trough: W04 closing cash 28,250 (first payroll week); headroom 28,250 - 1,000 + 20,000 = 47,250; lowest margin over the minimum 12,250 in W04.
  • Opening headroom at 2026-12-31: 28,000 - 1,000 + 20,000 = 47,000, equal to the figure in the Treasury Policy and the covenant certificate.
  • Weekly receipts by source are in section 5.1; their totals agree to section 3.

5.1 Receipts by source and week

Example: EUR thousand. This split drives the downside case in section 9.2 and the variance analysis in section 7.

WeekSubscriptions (RCT-001)Marketplace (RCT-002)Services (RCT-003)Other (RCT-004)Total receipts
W01 (Example)2,60070010003,400
W021,50090020002,600
W031,00090050002,400
W041,60090030002,800
W052,50090010003,500
W061,50090020002,600
W071,4009001002002,600
W081,70090020002,800
W092,50090010003,500
W101,50090020002,600
W111,30090020002,400
W121,70090020002,800
W131,9009002002003,200
Total22,70011,5002,60040037,200

Check: subscriptions W01 to W08 = 13,800 and W09 to W13 = 8,900, total 22,700; marketplace 700 + 12 x 900 = 11,500; services 2,600, including the disputed 400 invoice due in W03; other = Vietnam VAT refund 200 (W07) and deposit interest 200 (W13). The first week of each month carries the card billing run; the later weeks carry enterprise invoices on 30-day terms.

5.2 Entity view

EntityOpening cashReceiptsDisbursementsIntercompany transfers in (out)Closing cash
Parent (plc) and cash pool (Example)14,9002001,0503,60017,650
Germany3,20020,10017,000(3,100)3,200
UK3,0006,5005,900(600)3,000
US5,6008,8008,300(500)5,600
Vietnam1,3001,6002,4006001,100
Group28,00037,20034,650030,550

Check: receipts 200 + 20,100 + 6,500 + 8,800 + 1,600 = 37,200; disbursements 1,050 + 17,000 + 5,900 + 8,300 + 2,400 = 34,650; transfers 3,600 - 3,100 - 600 - 500 + 600 = 0; holding 14,900 + 200 - 1,050 + 3,600 = 17,650; Vietnam 1,300 + 1,600 - 2,400 + 600 = 1,100; group closing 17,650 + 3,200 + 3,000 + 5,600 + 1,100 = 30,550. Holding disbursements are the term loan interest (300) and the share of payroll, opex and tax paid centrally (750).

6. Liquidity headroom against the minimum

TestRequirementLowest value in horizonWeekResult
Treasury policy minimum headroom (Example)Unrestricted cash (excluding trapped cash) plus undrawn committed facilities with more than 12 months to maturity, at least EUR 35,000k47,250W04Met, margin 12,250
Facility qualification (Example)FAC-002 counts only while more than 12 months remain (up to 2027-06-29)Cash alone is 28,250 at W04, below 35,000From the week ending 2027-07-02 (cycle CF13-2027-14 onwards)Breach unless the refinancing is signed: see Liquidity and Funding Plan (finance/liquidity-funding-plan) section 5.2
Minimum operating cash (Example)Group cash at least EUR 10,000k so that payroll never depends on a facility draw28,250W04Met
Lender minimum liquidity covenant[Not applicable / as defined in the facility agreement][Value][Week][Met / Breach]
Cash not freely availableCC-VN balance that cannot be remitted or swept (1,000), deducted in every week; profit remittance subject to local rules (check local law)1,000 deducted; CC-VN closing cash 1,100 at W13W13Deducted and disclosed

The trapped-cash deduction is part of the base case, not a sensitivity: headroom at the W04 trough is 28,250 - 1,000 + 20,000 = 47,250. If the whole Vietnam opening balance of 1,300 were treated as trapped, it would be 46,950, and the minimum would still be met.

The headroom result in this cycle depends entirely on FAC-002. Cash on its own ranges from 28,250 to 33,250 and never reaches the 35,000 minimum, so the moment the facility stops qualifying the test fails unless the new facilities are signed (Liquidity and Funding Plan section 5.2 shows shortfalls of 9,950 and 10,950 at the 2027-06-30 and 2027-09-30 quarter ends). Report this dependency in every cycle until the refinancing closes, and state in the sign-off (section 10.3) which facilities the headroom figure relies on and until when they qualify. If a lender definition differs from the treasury policy definition, report both and use the lender definition for any covenant statement in Covenant Compliance Certificate (finance/covenant-compliance-certificate).

7. Variance to the prior forecast

7.1 Actual against forecast for the week just closed

Example: the next cycle (CF13-2027-02) reports week W01 actuals against this forecast. EUR thousand.

LineForecast W01Actual W01VarianceTimingPermanentExplanation
Subscription receipts (Example)2,6002,450(150)(100)(50)Card retries roll into W02; 50 lost to cancelled cards
Marketplace payouts700520(180)(180)0Marketplace moved its payout to Monday (W02)
Services receipts100100000
Total receipts3,4003,070(330)(280)(50)
Suppliers1,1001,180(80)0(80)Expedited freight on a late inbound shipment
Opex400400000
Debt service (lease)150150000
Total disbursements1,6501,730(80)0(80)
Net flow1,7501,340(410)(280)(130)
Closing cash29,75029,340(410)

Check: 3,070 - 1,730 = 1,340; 28,000 + 1,340 = 29,340; timing (280) plus permanent (130) = (410). A negative variance reduces cash, whether it comes from lower receipts or higher payments.

Forecast accuracy for receipts, measured each week:

Receipts accuracyt=1−∣Rtactual−Rtforecast∣Rtforecast=1−3303,400=90.3%\text{Receipts accuracy}_t = 1 - \frac{\lvert R_t^{\text{actual}} - R_t^{\text{forecast}} \rvert}{R_t^{\text{forecast}}} = 1 - \frac{330}{3{,}400} = 90.3\%

Track accuracy by line and by lag (one week ahead, four weeks ahead, eight weeks ahead). Target (Example): at least 90% one week ahead and 80% four weeks ahead for total receipts.

7.2 Bridge from the prior forecast

Step (EUR thousand)AmountExplanation
Prior forecast closing cash at 2027-04-02 (CF13-2027-01, W13) (Example)30,550
Permanent variance in W01(130)Section 7.1
Timing variance in W01, reversing in W020(280) in W01, +280 in W02
Change in forecast: enterprise customer prepayment brought forward into W03300Confirmed by the customer in writing
Change in forecast: Vietnam payroll uplift in W04, W08 and W13 (50 each)(150)Local salary review effective January
New forecast closing cash at 2027-04-0230,570
New week W14 (ending 2027-04-09): receipts 3,400 less disbursements 1,6501,750Start-of-month subscription billing; suppliers 1,100, opex 400, lease 150
New forecast closing cash at end of horizon (2027-04-09)32,320

Check: 30,550 - 130 + 0 + 300 - 150 = 30,570; 30,570 + 1,750 = 32,320. April VAT (around 2027-04-12) falls in W15 and enters the next cycle.

8. Key assumptions

Assumption IDAssumptionValueSourceOwner
ASN-001 (Example)Card settlement lag after the monthly billing run2 to 3 business days; 97% of billed card value collected within 10 daysPayment processor reports, last six months[@credit-control]
ASN-002 (Example)Enterprise customers paying on 30-day termsAverage 9 days lateAgeing analysis[@credit-control]
ASN-003 (Example)Marketplace payoutWeekly, seven days after delivery, net of feesMarketplace settlement calendar[@commerce-finance]
ASN-004 (Example)Supplier payment runWeekly on Thursday; no early payments; supplier finance invoices on extended dateAP policy[@ap-lead]
ASN-005 (Example)Payroll amount4,300 per month, no bonus in horizonHR payroll calendar[@payroll-lead]
ASN-006 (Example)Foreign exchangeUSD 1.10, GBP 0.86, VND 28,500 per EURTreasury forecast rates of the cycle[@group-treasurer]
ASN-007 (Example)Corporate income tax instalment800 in MarchTax authority notice[@tax-lead]
ASN-008 (Example)Capex milestones900, 800 and 900 in W03, W07 and W11Approved capex requests[@cfo]

Currency effect: a 10% weaker USD against EUR reduces US receipts net of US payments in this horizon by about (8,800 - 8,300) x 10% = 50 in EUR terms, because the US entity is close to self-funding over 13 weeks; the effect on the USD balance held is larger: USD 6,160k at 1.21 instead of 1.10 is EUR 5,091k, about 510 less.

9. Risks, downside case and mitigating levers

9.1 Risks and upsides

Risk IDDescriptionWeeks affectedCash effectLikelihoodOwner
CFR-001 (Example)Largest marketplace pauses payouts for a policy reviewW05 to W08(3,600) delayedLow[@commerce-director]
CFR-002 (Example)Services customer in dispute withholds payment of a 400 invoice due in W03W03 onwards(400)Medium[@credit-control]
CFR-003 (Example)Vietnam VAT refund delayed beyond horizonW07(200)Medium[@vietnam-finance-lead]
CFR-004 (Example)Upside: earlier settlement of a large services milestoneW09300Medium[@services-director]

9.2 Downside case

Example: marketplace payouts stop for four weeks (W05 to W08, 3,600 delayed and received in W09 to W12 on top of the forecast payouts), subscription receipts come in 10% below forecast in every week, and the services customer in dispute never pays the 400 invoice due in W03 (CFR-002). No lever is applied in the case itself; levers are shown separately in section 9.3.

Measure (EUR thousand)BaseDownsideChange
Lowest closing cash (week)28,250 (W04)23,770 (W08)(4,480)
Lowest headroom47,250 (W04)42,770 (W08)(4,480)
Lowest margin over minimum12,250 (W04)7,770 (W08)(4,480)
Closing cash at W1330,55027,880(2,670)

Check: subscription receipts W01 to W08 total 13,800 (section 5.1), so the 10% shortfall to W08 is 1,380; with the marketplace delay (3,600) and the unpaid invoice (400), cash at W08 is 1,380 + 3,600 + 400 = 5,380 below the base, and 29,150 - 5,380 = 23,770. By W13 the marketplace delay has reversed, leaving the full-horizon subscription shortfall (10% of 22,700 = 2,270) and the invoice (400): 30,550 - 2,670 = 27,880. Headroom deducts the trapped 1,000 and adds the undrawn 20,000 (23,770 - 1,000 + 20,000 = 42,770); the minimum is still met with a margin of 7,770.

9.3 Mitigating levers

Lever IDLeverCash value in horizonLead timeSide effectsOwner
LEV-001 (Example)Draw on the revolving facility (FAC-002)Up to 20,0003 business daysInterest cost; does not change headroom[@group-treasurer]
LEV-002 (Example)Defer capex milestones not yet contractedUp to 1,700 (W07, W11)1 weekProduct roadmap delay[@cfo]
LEV-003 (Example)Freeze discretionary marketing and travelAbout 185 per week1 weekLower pipeline later[@cmo]
LEV-004 (Example)Collections push on enterprise overdue balances300 to 6002 weeksCustomer relationship[@credit-control]
LEV-005 (Example)Reduce inventory buys to forecast volume500 to 1,000 over 8 weeks2 weeksStock-out risk on fast movers[@commerce-director]

Do not plan to stretch supplier payments beyond agreed terms: it damages supply, may breach late-payment rules in the EU (Directive 2011/7/EU) and the UK, and may be visible to lenders through supplier finance programmes.

10. Process, controls and sign-off

10.1 Weekly calendar

DayStepOwner
Monday 10:00Bank balances at Friday close loaded; actuals for the week closed[@treasury-analyst]
Tuesday 12:00Entity submissions and variance explanationsEntity finance leads
WednesdayConsolidation, roll, headroom and downside case[@group-treasurer]
ThursdayReview by financial controller and CFO; lever decisions[@financial-controller], [@cfo]
FridayDistribution; lender pack if required[@group-treasurer]

10.2 Controls

Control IDControlEvidence
CFC-001 (Example)Opening cash agrees to bank statements for every accountBank reconciliation file
CFC-002 (Example)Roll integrity check: opening plus receipts less disbursements equals closing in every weekModel check cell, must show zero
CFC-003 (Example)Total of first 13 weeks reconciles to the Rolling Forecast first quarter within toleranceReconciliation tab
CFC-004 (Example)Every change of more than [EUR 250k] from the prior cycle has an explanationBridge table, section 7.2
CFC-005 (Example)Model is version controlled; inputs separated from calculationsFile history; model structure follows Financial Model Specification (finance/financial-model-specification)
CFC-006 (Example)Facility draw requests follow the delegation of authorityDelegation of Authority Matrix (finance/delegation-of-authority-matrix)

10.3 Sign-off statement

Example: "I have reviewed the 13-week cash flow forecast CF13-2027-01. Opening cash agrees to the bank statements at 2026-12-31. The forecast reflects management's best estimate at the date of approval. Headroom stays above the treasury policy minimum in every week of the base case; it relies on the undrawn revolving facility FAC-002, which qualifies until 2027-06-29, and the refinancing that replaces it is tracked in the Liquidity and Funding Plan." Signed [@cfo], YYYY-MM-DD.

When the forecast is given to lenders, check the information undertakings in the facility agreement for the required content, frequency and any certification wording, and have legal counsel review the first lender version.

10.4 Common failure modes

  • Indirect forecast dressed as direct. Weekly figures produced by dividing a monthly profit forecast by four show no payroll trough and no tax peak. Rebuild from calendars and collection curves.
  • No actuals comparison. A forecast that is never compared with the bank does not improve. Section 7 is not optional.
  • Optimism on receipts, completeness gaps on payments. Receipts tend to be forecast too early and payments forgotten. Check every category against the same weeks of last year for missing items.
  • Ignoring currency and location. A group total in EUR can look healthy while one subsidiary cannot pay its payroll. Keep the entity view in section 5.2.
  • Silent changes. Every change to a prior week's forecast needs a line in the bridge, so that readers can see whether the outlook improved because of business or because of assumptions.

11. Glossary and references

11.1 Glossary

TermMeaning in this template
Direct methodForecasting actual cash receipts and payments rather than adjusting profit for non-cash items
Indirect methodStarting from profit and adjusting for non-cash items and working capital; used in longer forecasts
RollThe weekly identity: opening cash plus receipts minus disbursements equals closing cash
Liquidity headroomUnrestricted cash, excluding trapped cash, plus undrawn committed facilities with more than 12 months to maturity
Committed facilityA facility the bank must lend under if the conditions are met, unlike an uncommitted line
Trapped cashCash that cannot be moved to where it is needed quickly because of law, tax or contract
Timing varianceA difference that reverses within the horizon
Permanent varianceA difference that does not reverse
LeverAn action that raises or preserves cash within the horizon
Information undertakingA borrower's promise in a facility agreement to deliver specified information to lenders

11.2 References

ReferenceVersion or date checkedUse
IAS 7 Statement of Cash Flows, IFRS FoundationName only, as amended May 2023; checked 2026-10-25Definitions of cash flows in the financial statements; the forecast is a management view, not an IAS 7 statement
Directive 2011/7/EU on combating late payment in commercial transactionsAdopted 2011-02-16; checked 2026-10-25 (a 2023 Commission proposal for a regulation to replace it was reported in 2025 as facing withdrawal; check the current status)Context for supplier payment terms
Association of Corporate Treasurers (ACT), liquidity and cash forecasting guidanceName onlyProfessional practice context
[Facility agreement][Date]Information undertakings and definitions
[Treasury policy][Version]Minimum headroom and facility qualification rule

Standard and licence note

Structure aligned with common corporate treasury and turnaround practice for direct-method 13-week cash flow forecasts; no standard prescribes the format. IAS 7 and the guidance of the Association of Corporate Treasurers are cited by name only and no text from them is reproduced. The EU Late Payment Directive is cited by number as public law. Corvid Commerce Group, its facilities and every figure are fictional. This template is original text written for this collection. Check the current versions of cited sources and the terms of your own facility agreements before use. Template licence: MIT.

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