Profit and cash flow are different. A business may record a sale before the customer pays, while wages and supplier costs must still be met.

Map receipts and expenses by the periods in which money actually moves. This reveals whether loan payments coincide with quieter trading periods or major supplier bills.

Allow for slower collections and seasonal changes. A repayment plan should work with a realistic cash cycle, not only the best month of the year.

Key takeaways

  • Profit and cash flow are different.
  • Map receipts and expenses by the periods in which money actually moves.
  • Allow for slower collections and seasonal changes.