Forecasting finance costs

At some point in a business’s lifetime, there’ll be a need for financing. Some businesses have a policy of leasing assets as it’s more effective from a cash flow perspective (regular know outgoings) versus a big cash outlay at one point in time. It’s crucial that these are accurately reflected in your cash flow forecast so you know that you can make your repayments on time.


CFM makes forecasting these cash flows easy

Let’s say you have a 60 month hire purchase agreement with the following payment schedule. Interest and principal components for each payment are accounting issues. For cash flow forecasting you’re concerned with cash movements only.

cash flow map repayments with cfm



This is how the CFM transactions look. You can enter these manually or upload them. Either way, it’ll take you about 1 minute!

how to cash flow map loan repayments with CFM 2

Let’s assume you soon have another hire purchase agreement.

How to cash flow map loan repayments with CFM 3



You can either copy the transactions for hp1 in your upload file and change the detail for upload or copy the transactions manually in your plan and edit the copies. Whichever way you prefer, setting up this agreement will take you less time than the first one!

How to cash flow map loan repayments with CFM4
Any additional transactions or edits are easily done, and your cash flow plan is always up to date.