Cash Flow Strategies for a Shifting Economy
After a prolonged period of rising interest rates, we’re finally seeing signs of easing. While this brings some welcome relief, it’s also a critical moment for business owners to strengthen their financial position, starting with cash flow.
Whether you’re preparing for growth, managing uncertainty, or sitting on excess funds, now is the time to take a more advanced and proactive approach to your cash flow strategy.
Why Cash Flow Still Comes First
Revenue is exciting. Profit is important. But cash flow is what keeps a business running. When managed well, cash gives you freedom to invest, grow, or weather unexpected change. When managed poorly, even profitable businesses can find themselves under pressure.
Cash flow strategy isn’t just about tracking your bank balance. It’s about forecasting ahead, planning for scenarios, identifying risks early, and making smart decisions with the funds you have.
Strengthen Your Forecasting
The first step in any cash strategy is a robust forecasting process. We’re helping clients move beyond static spreadsheets and set up dynamic cash flow forecasts that are updated monthly (or even weekly in fast-changing environments).
A strong forecast should:
Cover at least 12 months on a rolling basis
Be updated with actuals regularly
Include both fixed and variable expenses
Reflect seasonality or timing of large inflows/outflows
Be tied to your operational and revenue plans
But more than just building a base case, it’s important to model multiple scenarios. What happens if revenue drops by 10%? If a major client delays payment? If a growth opportunity arises and you need to fund it quickly?
By stress-testing your cash flow across different outcomes, you’re better prepared for both risk and opportunity.
Identify Funding Gaps Early
With interest rates beginning to ease, lending conditions may gradually become more favourable. But relying on credit at the last minute is still risky.
Your forecasts can help identify upcoming funding gaps well in advance. That gives you time to:
Explore lines of credit or working capital facilities
Negotiate with lenders on improved terms
Stage payments or restructure supplier agreements
Free up internal cash by reviewing costs or tightening receivables
Having a clear picture of your funding needs 3, 6, or even 12 months in advance puts you in a far stronger position to act proactively rather than reactively.
Manage Short and Long Term Liquidity
Liquidity is about ensuring you have access to the right amount of cash, at the right time.
We work with clients to manage liquidity on two fronts:
Short-term: Do you have enough cash to meet payroll, rent, and supplier payments? Can you absorb a timing delay in receivables? Are your tax obligations accounted for?
Long-term: Are you building enough cash reserves to reinvest in growth, repay debt, or fund strategic initiatives? How will you fund capital expenditure or expansion?
By planning for both horizons, you reduce risk and improve your ability to move quickly when opportunities come up.
Put Excess Cash to Work
If your business is holding excess cash, that’s a great position to be in but it shouldn’t sit idle.
You may want to assess where your surplus cash can add the most value. Some of the options include:
Short-term returns: Placing idle cash in high-interest savings accounts, term deposits, or low-risk cash management options to earn a return while keeping funds accessible.
Debt reduction: Using surplus funds to reduce high-interest debt can free up future cash flow and strengthen the balance sheet, particularly if interest rates begin to shift again.
Reinvestment: Investing in your own business, whether that’s new hires, marketing, systems, or R&D, can be a smart move if the return on investment is clear and strategic.
Every business is different, so the right choice depends on your goals, risk appetite, and time horizon. What matters most is that the decision is intentional, not accidental.
Embed Cash Flow into Decision-Making
Cash flow shouldn’t be an afterthought. It should be part of every major business decision including hiring, expansion, capital purchases, even pricing.
That’s why we work with clients to integrate cash flow thinking into their decision-making processes. This includes:
Building dashboards that show key cash metrics in real time
Creating approval workflows for major spending
Training leadership teams to understand the cash impact of decisions
Establishing thresholds for when to escalate or review expenditure
When cash becomes part of the culture, businesses become more resilient, more agile, and more prepared for what’s next.
Thinking Ahead
We’re moving into a new phase of the economic cycle. Interest rates may ease, but volatility isn’t over and the businesses that stay ahead will be those with strong, forward-looking cash strategies.
Whether you’re navigating funding gaps, managing growth, or simply looking to use your cash more strategically, now is the time to elevate your approach.
At Olive Business Partners, we specialise in helping ambitious business owners gain clarity and control over their cash flow. Through forecasting, scenario planning, liquidity strategy, and investment reviews, we make sure your cash is working as hard as you are.
If you’d like to strengthen your cash flow strategy, get in touch, we’d love to help.