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The New Monthly Commercial Cash Flow Capability of FINPACK

by | Nov 17, 2022

What’s New in the Commercial Cash Flow Tool in FINPACK?

The 2022 Fall Release of FINPACK adds the capability to complete annual OR monthly cash flow projections for commercial clients. These projections can be for a few months or multiple years. This replaces the previous commercial cash flow component of FINPACK which only allowed for annual plans to be completed. Any legacy projections from prior versions of FINPACK are available via the File Settings section of Tools + Options.

Why Would I Want to Complete a Monthly Cash Flow Plan?

The cash (and therefore borrowing) needs of a commercial business are dynamic and inconsistent throughout a year and even from month to month. Therefore, it is crucial to monitor these changes and to understand when a client may need to borrow more and when they may be able to pay back some of their line-of-credit as the year progresses. A monthly cash flow projection brings these natural business ‘ebbs and flows’ to the forefront, helping businesses to prepare for cash flow needs.

Another benefit of completing a monthly cash flow plan is the opportunity to see what drives changes in cash throughout the year. Perhaps early in the year the business is building inventories draining available cash. But later in the year, they collect outstanding accounts receivables resulting in cash inflows (and the ability to repay lines of credit or operating loans). With an annual plan, you would not know when these different cash drivers are occurring.

Does this mean it is wrong to use annual cash flow projections for commercial clients? Certainly not. Annual cash flows can still be valuable projections, depending on the needs of the client. However, the lender just needs to recognize that they are not going to be able to monitor and understand the changes in the business throughout the year as easily.

Using Monthly Commercial Cash Flows for SBA Loans

A great benefit of completing a monthly commercial cash flow in FINPACK is the ability to use them for SBA (Small Business Administration) loans. A monthly commercial cash flow from FINPACK meets and really exceeds the requirements from the SBA. This enables a lender to enhance their efficiency by not only using a cash flow to see what the upcoming time period will possibly look like for a business, but they can also then use that cash flow in an SBA loan application process.

Get the Updated Commercial Tools!

The 2022 FINPACK update will be applied automatically in FINPACK+. On installed versions of FINPACK, the update is available now. While in FINPACK, simply go to Help +/ Software Updates and follow the steps. Have questions? Please reach out to our Product Support Team and we will be glad to help!

Find Out More at the FINPACK Lenders Conference

Learn more about the 2022 FINPACK update at the 2022 FINPACK Lenders Conference, Dec 13-14 at the Radisson Blu MOA. Get the latest updates in Ag and Commercial lending, enjoy our stellar lineup of speakers, network with fellow FINPACK users, and interact with the FINPACK team. Learn more and register today!

Don’t forget to follow FINPACK on FacebookTwitter & Instagram, connect with us on LinkedIn, and subscribe to FINPACK News email updates.

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Prior to joining the FINPACK Team, he worked one-on-one with farmers on farm financial management and income tax planning and preparation. Devin holds a Master's Degree in Agricultural Economics from Kansas State University, and a Bachelor's Degree in Agricultural Business from South Dakota State University.

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