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Liquidity Forecast / Cash Gap

A liquidity forecast evaluates whether available cash will be sufficient to meet obligations over time. A cash gap occurs when scheduled outflows exceed available cash.

Why It Matters

•Reveals misalignment between supplier payments and incoming settlements.
•Helps prevent missed payments, forced under-ordering, or emergency financing.
•Essential during growth phases when cash strain increases.

Connection to Capital

Liquidity constraints directly limit working capital deployment and growth velocity.

Related Terms

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