When is it advisable to request a grace period on a loan and what risk does it carry?
It is advisable when the investment takes time to generate cash flow, for example, machinery or commercial expansion. The risk is that the future instalment rises…
How to estimate the ‘cash gap’ of a grant that is collected after the fact?
Calculate the total investment, subtract what you can finance with a supplier or bank, and assume that you advance the subsidised part yourself until collection
What is a 13-week treasury model and why is it so widely used in SMEs?
It is a rolling weekly control of collections and payments that allows you to anticipate cash flow pressures with 6 to 10 weeks of lead time
How to calculate the minimum operating cash you absolutely need?
Start from your unavoidable monthly payments, payroll, Social Security, rent, utilities, debt instalments and estimated taxes.
What is the difference between a grant, a subsidised loan and a subsidised guarantee, and why does it affect your cash flow?
A grant reduces costs, but is usually paid after justification, so it requires prior cash. A subsidised loan gives you immediate liquidity
What is “control” bank reconciliation and why is it not enough to do it accounting-wise?
It’s not just about balancing amounts, it’s about identifying recurring charges, commissions, duplicates and patterns, that’s where small leaks appear that add up to a lot over the year.
Why is it advisable to calculate margin by channel, not just globally?
Because one channel may be profitable while another destroys cash flow (returns, commissions, logistics), without separating by channel, the average deceives you.
What does margin quality say, beyond the percentage?
If your margin depends on one-off “extras”, emergencies or non-repeatable work, your margin is fragile, seek recurring margin
How to know if an early payment discount is worth it?
Convert the discount into an annualized cost, if they ask you for 2 percent to collect 60 days earlier, it may be equivalent to a high rate
Why does the APR matter more than the nominal rate?
Because the APR includes fees and payment frequency, and allows you to compare two different offers with a real measure of cost.
