The fourth cause of poor cashflow – Your debt or capital structure

Reduce interest costs and strengthen your cashflow with a regular debt review

A regular review of your business and personal debt can lower interest costs and free up cash for day-to-day operations and growth. Use the guide below to create a clear picture of what you owe and the simple steps to improve your position.

Step 1: Build a single view of all debt

List every loan and liability (exclude amounts owed to suppliers): bank loans, mortgages, finance company loans, hire purchases, credit cards, and other debts. For each item, capture:

The balance outstanding
The current interest rate
Whether the rate is fixed or variable
The repayment terms (how many years to repay) and repayment frequency

Step 2: Test smarter structures

With everything in one place, consider whether consolidation or refinancing would help. One lender, a sharper rate, or a longer term can reduce repayments and keep more cash in the business when you need it most.

Step 3: Check drawings and owner spending

If personal drawings are putting pressure on cashflow, it may be a sign that profitability needs lifting, drawings need trimming for now, or the business needs more capital to fund growth. Addressing this early prevents shortfalls later.

Step 4: Map your personal spend (quick exercise)

List your annual personal expenses by category — rent or mortgage, childcare, groceries, transport, subscriptions, eating out, and so on. Many owners are surprised by the total. Ask us for our Personal Budget Template to make this fast and accurate.

Step 5: Forecast the impact before you act

Getting your debt and capital structure right can materially improve cashflow. The first step is to prepare an updated Personal Budget and a 12-month Cashflow Forecast. From there, we can measure the extra cash released by simple changes — rate reductions, term adjustments, revised drawings, or a tidy-up of facilities — so you can decide with confidence.

How we can help

Prepare a clear debt schedule and spot quick wins
Model repayment options and interest savings
Build a practical Cashflow Forecast you can run each month
Facilitate a Cashflow & Profit Improvement Meeting to agree actions and owners

Forecasting for the first time can feel daunting, but once set up it becomes one of your most valuable tools for decision-making. We will do this with you and keep it simple and practical.