Revenue grows, cash does not
Receivables, inventory or unbilled work increase faster than the cash available to fund them.
Consult EFC · UK businesses · Sector agnostic
Connect customer, product and project margins with collections, stock and payment commitments, so management can prioritise the changes worth making.
When the current process needs more
Sales can grow while cash tightens. A busy team can still deliver low-margin work. A product can look attractive before returns, fulfilment or support costs are included. Decisions improve when the management team can see where value is being earned and where cash is being absorbed.
Consult EFC reviews the agreed economics and operating cash drivers, tests the evidence behind them and helps management turn findings into a practical action plan. The aim is a clearer basis for decisions, with responsibilities and measures for implementation.
Receivables, inventory or unbilled work increase faster than the cash available to fund them.
Pricing, discounts, delivery effort, product mix or overhead allocations conceal the work that is genuinely profitable.
The team needs a prioritised plan with named owners, practical dependencies and a way to measure whether changes are working.
Agree the outputs before the work
An agreed view of customer, product, project, site or service contribution, with documented cost definitions and an explanation of data gaps.
Analysis of discounts, delivery effort, fulfilment, returns, servicing or other costs relevant to how you make money.
Debtor ageing, disputed invoices, billing milestones, unbilled work and collection processes, with priorities for management action.
Relevant stock ageing, purchasing, work in progress and supplier-payment patterns, with attention to service and continuity requirements.
A view of the cash implications of selected changes, including timing, implementation costs and downside assumptions.
An agreed set of actions, owners, measures, dependencies and review dates. Ongoing support can be scoped separately.
Make the work visible
A simple illustration of receivables timing. It does not predict the result of an engagement or establish how quickly customers will pay.
Use a consistent invoiced basis, including VAT where applicable.
Indicative receivables release
Annual credit billings ÷ 365 × reduction in collection days. Assumes even billings and collection of the relevant invoices. This is a possible balance-sheet timing release, not extra profit or a guaranteed recurring saving.
Clear work. Clear responsibilities.
A change can improve profit, release cash, do both or create a new trade-off. Reducing a discount may affect demand. Cutting stock may affect availability. Paying suppliers later without agreement may damage supply and relationships. We assess the commercial context rather than treat a ratio as a decision on its own.
| Area | Question to investigate | What the action plan should consider |
|---|---|---|
| Customer or project contribution | Does the price cover the effort and costs required to serve the work? | Scope, discounts, delivery process, repricing and customer implications. |
| Billing and collections | What delays the invoice, approval or payment? | Evidence, responsibilities, disputes, terms and collection conversations. |
| Inventory and work in progress | What is tying up cash and how likely is it to convert? | Demand, ageing, obsolescence, lead times and service requirements. |
| Purchasing and supplier payments | Does the commitment match operational needs and available cash? | Agreed terms, continuity, purchasing discipline and approval controls. |
| Growth and funding | What additional cash is needed before revenue is collected? | Operating scenarios, lead times, realistic funding and downside cases. |
The British Business Bank explains why a profitable business can still face cash pressure. Our work connects that distinction to your records, operating model and the changes management can realistically make.
We agree whether the brief is a diagnostic, a specific improvement workstream or ongoing implementation support. Results depend on the business, evidence and execution; we do not promise a predetermined percentage improvement or cash release.
Built around the way you operate
The service is sector agnostic. The examples below show how a brief can be tailored; acceptance and any specialist input depend on your business, reporting requirements and complexity.
Review project contribution, utilisation, scope changes, unbilled work and the time between delivery, client approval and collection.
From initial brief to useful outputs
Identify the decisions, cash constraints and metrics management needs to understand.
Agree data sources, cost definitions, reconciliations and the limits of the starting information.
Investigate the drivers, assess scenarios and discuss commercial and operational trade-offs.
Agree owners, implementation steps and review measures; scope ongoing support where useful.
A useful first conversation
Useful starting information includes recent management accounts, customer and product or project data, debtor and creditor ageing, stock or unbilled-work schedules, commercial terms and the current cash forecast. We can identify gaps before specifying the analysis.
To distinguish genuine progress from changes in timing or mix, agree a baseline and review the relevant measures over time. Cash released once should not be presented as an annual profit improvement. Cost reductions should be assessed alongside implementation costs and operational consequences.
Your questions, answered
It means investigating and improving how operating balances such as receivables, inventory and payables affect cash and business performance. The appropriate actions depend on the operating cycle, commercial terms and operational needs.
No. Collecting an existing receivable sooner generally changes cash timing rather than creating new revenue or profit. The illustration on this page is a balance-sheet timing calculation, not a profit forecast.
We can discuss the level of analysis that your records support. We agree revenue and cost definitions, allocations and data limitations so the resulting measures are understandable and useful.
Negotiation or direct contact is included only if explicitly agreed. Management retains commercial decisions and approvals. The initial review can prepare evidence and priorities for those conversations.
No. It is a simplified illustration using annual credit billings and an assumed reduction in collection days. Seasonality, disputes, tax, growth and operational changes can affect actual outcomes.
No. We can investigate opportunities and support implementation within an agreed scope. Results depend on the evidence, commercial position, actions and external factors.
A cash forecast shows expected receipts and payments over time. An improvement review investigates why cash and margins behave as they do and assesses changes to the operating drivers. The services can be combined.
We can discuss a defined diagnostic, a focused workstream or continuing implementation support. Scope, deliverables, data requirements, responsibilities, fee and review arrangements are agreed before starting.
Tell us where performance is under pressure. We will discuss the evidence, priorities and a sensible starting scope.
Please describe the requirement in your enquiry. Confidential records can follow through an agreed sharing process.