Cash Flow Improvement

When faced with a cash crunch, you are in survival mode and not able to make the best strategic decisions. Worse still, without cash on hand, you can’t pay your vendors, employees, lease obligations, or bank debt. In this situation, it can feel like you are no longer in control of your own business.

If your business is struggling to pay its bills, you are not alone: as many as 61% of businesses have issues with cash flow. ClearPath can help put you back in control with the information you need to make tough decisions.

Our Approach

Analyze Historical Data and Current Sources and Uses of Cash

ClearPath starts by meeting with you to understand your business, including the industry you operate in, banking relationships, and your terms for payment and collections. Our team reviews up to three years of banking transactions to create a historical cash flow model. This gives us the “baseline” of your business before build a rolling cash flow forecast to review together.

Combine Historical Analysis with Trends to Create Forecast

Depending on your cash crunch, ClearPath sets up either a weekly model that predicts an entire year, or we use a daily model that plans out to six months. Cash outflows and inflows will be grouped by category. Organizing the data of cash flow leads to “lightbulb” moments for our clients, who may not be aware of some ongoing expenses.

Use Forecast Model to Analyze Different Scenarios and Create an Action Plan

Once built, our model is fit to create “what-if” scenarios so that you can quickly consider investment opportunities, potential expense cuts, and the impact of new revenues. ClearPath will build and maintain the model, and review it with you frequently during cash planning sessions. Alternatively, we offer training so you or your team members can maintain and use the model going forward.

This tool is used by companies undergoing restructuring and financial distress, VC-backed startups with high cash burn, large publicly traded corporations, and the majority of ClearPaths clients.

Why Choose ClearPath?

As many as as 82% of business failures come down to poor cash management. ClearPath has never lost a client that relied on us for ongoing cash flow forecasting. During the Covid-19 pandemic our clients were armed with our forecasting tools which allowed them to make the best decisions for their businesses.

Despite harsh Bay-Area restrictions on some of our clients, we’re proud that we did not lose a single client.