Cash Flow Forecasting: 13-Week Forecast and Working Capital
This guide is for founders and CEOs who need to know how much cash they will have in 13 weeks, not just what the P&L says. It explains the cash flow statement, how working capital eats cash as you grow, how to run a weekly forecast, and which financing options to line up before cash gets tight.
What's in the guide
- The cash flow statement: operating, investing and financing cash flow, and the direct vs. indirect method
- The cash conversion cycle (DSO + DIO − DPO) with the formula for each part
- 12 cash flow forecasting practices, starting with a weekly cash forecast and a 13-week view you roll forward each week
- Unlevered vs. levered free cash flow, with formulas and what each one is used for
- Debt service coverage ratio (DSCR) and interest coverage, with typical lender minimums
- Cash uses and levers for retail, SaaS and manufacturing businesses
- Factoring step by step, recourse vs. non-recourse, and subordinated and mezzanine financing
- Cash flow management software, including 2026 additions
Questions this guide answers
What is a 13-week cash flow forecast?
It is a week-by-week projection of cash in and cash out for the next quarter. The guide recommends updating it weekly, extending it by one week each time, and tracking actual cash against the forecast.
How do you calculate the cash conversion cycle?
Cash conversion cycle equals days sales outstanding plus days inventory outstanding minus days payable outstanding. A shorter cycle means cash comes back to the business sooner.
What DSCR do lenders require?
The guide shows 1.25x or higher as a typical lender minimum and 1.15x as the SBA 7(a) floor. DSCR is net operating income divided by total debt service.
How does invoice factoring work?
A factor buys your invoices for their value less a fee and often advances 70% to 90% up front. With recourse you repay the factor if your customer does not pay; with non-recourse the factor takes that risk for higher fees.
What is a good DSO?
The guide suggests aiming for days sales outstanding under 50 days. A high DSO means billing and collection are out of sync.
How Strativ helps
Running out of cash is the most common way a growing company gets into trouble. Mark Sue spent his Wall Street career as a Managing Director at RBC Capital Markets in equity research, IPOs and M&A, and Strativ clients have raised more than $500M. Strativ builds and runs 13-week cash forecasts and helps companies decide between debt, factoring and equity well before the runway gets short.
Request the full guide for the complete one-page reference, or book a call to talk through your situation.
