Demonstrate a path to profit

Preparing a cash-flow forecast will help you secure funding and operate your business successfully.

Cash flow forecasting

Cash flow is the total money a company receives in a given time minus the total amount spent. If a company takes in more than it spends over a period of time, it is said to have positive net cash flow for that time and is more likely to be considered by lenders and investors as financially healthy.

If you’ve identified your target market and industry trends, you can forecast your business’s future income and expenses even before you make a sale. An accurate cash-flow forecast is an important component of your business plan. Lenders and investors are going to want to see realistic, well-researched, defensible projections to determine if you can repay your loan or sustain profitability.

How to forecast cash flow

Industry-accepted assumptions found during your market research can help you develop a sales forecast and expense budget. The difference between the two will lead you to your cash-flow forecast. It’s important that you’re honest with yourself throughout the forecasting process. Failing to accurately account for expenses will lead to negative cash flow and difficulty staying in business. M&T is here to help budding entrepreneurs like you fine-tune your business plan. Get expert guidance in determining your startup costs, operating expenses and break-even analysis so that you’ll have the information needed to accurately forecast cash flow, secure financing and successfully operate your business.

M&T Bank can help you refine your business plan. Schedule an appointment with your local M&T branch.


Small Business Planning

Our resources can teach you how to get your small business in front of more people to increase brand awareness, gain visibility, increase business and much more. Learn more about small business planning.

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