Profit is not cash
A job can be profitable and still leave you short, because the money goes out before it comes in. Pay your subcontractors at 30 days and get paid at 60, and for a month the job runs on your money.
| When | What happens | Amount | Running balance |
|---|---|---|---|
| Day 30 | You pay subcontractors and suppliers | -£6,650 | -£6,650 |
| Day 60 | The client pays you | £9,500 | £2,850 |
| Day 395 | You release subcontractors' retention | -£350 | £2,500 |
| Day 425 | The client releases retention | £500 | £3,000 |
The job needs £6,650 of your own cash for 30 days before the client's money arrives.
Why it limits growth
Every job you win at the same time needs its own share of cash up front. Winning more work can make cash tighter, not looser, until the client payments catch up. The calculator shows that before you take the job on.
Questions
How much cash does a job need?
The most your running balance goes negative: what you have paid out before the client's money arrives. The calculator shows it and how many days it lasts.
Does retention affect cash flow?
Yes, both ways. Retention a client holds is your money you wait for; retention you hold from subcontractors is theirs you hold. The calculator includes both.
Where the figures come from
Every number this tool works with is one you enter. It uses no outside rate, threshold or date, so there is nothing to look up.