Cash flow runway calculator
Your runway is how many weeks the company can keep paying its bills before the cash runs out. A runway under about six weeks is a clear signal to act immediately, because the best rescue and restructuring options need time to arrange.
Your runway
You have some time, but a falling runway is the earliest warning sign. Tighten credit control and consider Time to Pay if tax is slipping.
Worked example: change the figures to your own. Runway = cash available divided by weekly net burn. Assumes income and outgoings stay steady.
How to get the figures right
Use the cash you can actually access today, not money you are owed. Count only income you are confident will arrive each week, and include everything you have to pay out, including tax and loan repayments. If weekly outgoings are higher than weekly income, the gap is your weekly burn, and your cash divided by that burn is your runway in weeks.
Common questions
What is a cash flow runway?
Your runway is how long the company can keep paying its bills before it runs out of cash, at the current rate of spending. It is the single most useful early-warning number for a director, because options narrow as the runway shortens.
My runway is short, what should I do?
Act now while options are widest. Tighten credit control, talk to HMRC early about Time to Pay, and if the gap is structural rather than temporary, take advice from a practitioner before creditors escalate.
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