Business finance • Working capital
What is in the SME working capital blueprint?
Working capital should be a stack, not a single facility. This blueprint shows how to map your cash cycle, layer funding, and keep lenders ready to say yes.
What are the key takeaways (TL;DR)?
- Map your cash conversion cycle before choosing funding.
- Stack facilities so each one matches a specific cash flow need.
- Keep a lender-ready data room to speed approvals and pricing.
Amelia Hart
How do you map the cash conversion cycle?
Start with the basics: days sales outstanding, days payables outstanding, and inventory days. This shows the gap between paying suppliers and collecting revenue.
Once the gap is visible, you can align facilities to the timeline instead of guessing.
How do you build a facility stack?
Most SMEs need more than one lever. A clean stack might include:
- Overdraft or revolver for day-to-day smoothing.
- Invoice finance to pull forward receivables.
- Asset finance for vehicles or equipment so cash stays free.
This keeps costs lower than one large unsecured facility and protects cash for growth.
How do you keep a lender-ready data room?
Approvals speed up when the file is clean. Keep these ready:
- Latest management accounts and BAS.
- AR/AP aging reports and pipeline summaries.
- Business bank statements for the last six months.
What is the working capital readiness checklist?
- Latest management accounts and BAS.
- AR/AP aging reports with top customers and suppliers noted.
- Six months of business bank statements.
- 12-month cash flow forecast with key assumptions.
- Pipeline or contract summaries that show forward revenue.
Which signals do lenders love?
Stable gross margins, predictable receivables, and clean account conduct make approvals faster. When those are in place, pricing improves too.
What are the next steps?
Email your latest BAS and management accounts to info@newgenfinancebrokers.com or call 0451 414 800. We will map the facility stack and shortlist lenders aligned to your cash cycle.