Meaning and transaction use
BDC describes a weekly rolling forecast that includes collections, other inflows, supplier payments, payroll, operating costs and loan payments. Its guidance also calls for best- and worst-case scenarios. [S1]
Proposed review method: build the forecast from dated cash events. For each material receipt, record the invoice, expected collection date, contact evidence and confidence assumption. For payments, record the due date and any agreed flexibility. Assign an owner to each forecast line and retain the previous version for comparison.
Worked example
Illustrative figures in USD thousands. Assume opening available cash of 300, no restricted funds and no borrowing. The table shows the first three weeks of a proposed 13-week model. A separate downside assumes 80 of week-two receipts arrive in week four.
Scroll the table horizontally to view all columns.
| Week | Opening | Receipts | Payments | Closing |
|---|---|---|---|---|
| 1 | 300 | 120 | 170 | 250 |
| 2 | 250 | 100 | 220 | 130 |
| 3 | 130 | 180 | 200 | 110 |
Base-case cash closes week three at USD 110,000. Under the stated delay, week two closes at USD 50,000 and week three at USD 30,000. Against an assumed management minimum of USD 75,000, the week-three shortfall is USD 45,000. That minimum is an illustrative management assumption.
Proposed transaction review process
Reconcile opening cash
Confirm bank balances, restrictions, uncleared payments and the model's cut-off date.
Date the movements
Assign receipts and disbursements to weeks using customer and supplier evidence.
Test timing pressure
Delay selected collections and include known tax, payroll, debt and capital-payment dates.
Roll and explain
Replace the completed week with actuals, explain variances and add a new thirteenth week.
Evidence checklist
Bank starting point
Statements, reconciliations, restricted-cash details and pending payment files.
Collections schedule
Aged receivables, invoices, customer correspondence and recorded collection assumptions.
Payment calendar
Payroll, taxes, suppliers, leases, debt service and committed capital expenditure.
Funding evidence
Facility availability, drawing conditions, expiry dates and approval status for proposed new funding.
Decision framework
| Situation | Proposed action |
|---|---|
| Receipts depend on an unresolved customer dispute | Show the delay explicitly and assign a collections action with a date. |
| Payroll week falls below the chosen minimum | Quantify the gap and assess evidenced funding or agreed payment changes. |
| The forecast assumes a new loan | Show its approval and draw conditions alongside an unfunded scenario. |
| Actual cash repeatedly misses forecast | Investigate timing and completeness at line level before rolling the model forward. |
Common errors to check
- Entering accounting revenue as cash received without a collection date.
- Omitting tax, debt-service or infrequent payments.
- Counting restricted cash as freely available.
- Replacing the prior forecast without retaining variance evidence.
Prepare a dated liquidity review
Bring the current bank reconciliation, receivables ageing and payment calendar to a working-capital discussion. Quantify the first cash-pressure date and the evidence needed to evaluate financing options.
Discuss the transactionPrimary references and editorial scope
- BDC: Preparing your finances for an economic slowdown
Rolling 13-week forecast, weekly updates, cash inflow/outflow categories and scenarios. Reference checked 17 September 2026.
General planning education. All example figures and the cash minimum are illustrative. The workflow is a proposed review method; future receipts, financing and payment changes require transaction-specific evidence.
General business information. Obtain advice appropriate to the legal, tax, accounting and financing facts. No offer, lender commitment or transaction outcome is represented. All worked examples use expressly assumed figures. Editorial draft date: 17 September 2026.
