build more cash flow statements.
It's too common to come across companies that don't regularly track or project cash flow. The result is a poorer understanding of cash requirements and runway, which is critical during periods of market disruption. Do your business (and your lender) a favor and build more cash flow statements.
Lenders are trained to focus on cash flow from a young age. The official lender handbook notes that cash flow is the primary way lenders get repaid and that credit evaluation starts with analysis of a company's actual and projected cash flow that adequately supports such ability (OCC Leveraged Lending Handbook). During periods of market disruption (like today) companies can expect increased scrutiny, focus and questions from their lenders regarding cash flow.
Without reviewing and analyzing cash flow, companies won't fully grasp their cash "sources & uses" (where their money is coming from and going towards). They won't be able to map their cash runway or adequately plan for future needs. Good cash flow reporting and analysis ensures your company (and lender) is well equipped - it also importantly shows you know what you are doing.
The Uncommon Borrower constantly evaluates and analyzes cash flow - they 1) proactively establish consistent reporting / forecasting practices, 2) breakdown sources & uses with precision to understand cash runway and the key levers affecting their path and 3) communicate with their lenders (don't wait to be asked / until you are in a crunch).
*See the below Excel templates for 1) basic cash flow reporting ("Cash Flow Reporting Template") and 2) more detailed cash flow evaluation and analysis ("World's Greatest Cash Flow Analysis Template").