Growing fast and running out of cash?

When growth outruns cash

Fast growth can look healthy on paper while the bank account gets tighter every week. In construction, extra jobs mean more wages, materials, hire and subcontractors now, while client money arrives later. That gap is the real funding need, and if it is not covered, success can start to strain the business. ([business.gov.au](https://business.gov.au/finance/cash-flow/set-up-a-cash-flow-statement?utm_source=openai))

Business.gov.au says a cash flow forecast is an estimate of future sales and costs, and that it helps you see whether income will cover costs and predict shortages or surpluses. ASIC also treats poor cash flow, lack of forecasts and trouble paying suppliers as warning signs that deserve early attention. ([business.gov.au](https://business.gov.au/finance/cash-flow/set-up-a-cash-flow-statement?utm_source=openai))

Build the 13-week view

Start with a 13-week cash view, not a rough monthly guess. Put wages, super, tax, fuel, materials, equipment hire and subcontractors into the week they will actually leave the account. Then add expected progress claims and other receipts by likely payment date, not by the date on the invoice instead. ([business.gov.au](https://business.gov.au/finance/cash-flow/set-up-a-cash-flow-statement?utm_source=openai))

That exercise is not about perfect numbers. It is about spotting the week where the account tips from manageable to short. If you can see the shortfall two or three weeks ahead, you can act before payroll, before a supplier refuses more credit and before overdraft limits start shrinking your options. ([business.gov.au](https://business.gov.au/finance/cash-flow/set-up-a-cash-flow-statement?utm_source=openai))

Source: Official guidance

Slow intake if needed

If the forecast shows a squeeze, slow the intake rather than hoping the bank will stretch. That may mean delaying a start date, dropping a low-margin job, refusing a project that needs too much upfront spending, or pausing new quotes until the funding gap is smaller. Growth is useful only if it can be carried. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))

ASIC says directors should get professional accounting or legal advice as early as possible when financial difficulty appears, because delay reduces options. If the business keeps taking on work without enough working capital, the problem can move from a timing issue to a wider solvency concern, especially when supplier terms are tightening too. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))

Line up funding early

Funding conversations belong in the calm period, not the panic period. Talk to your bank, broker or private funder before the next payroll if the forecast is tight. Ask what facility, security and timing actually suit the business, because a cheaper headline rate is no help if the money lands too late. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))

Keep the request grounded in numbers. Show the next 13 weeks, current debt, aged creditors, tax dates and the minimum cash needed to keep trading safely. That makes the conversation specific and gives the lender or investor something concrete to assess instead of a vague plea for breathing room today. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))

Tighten terms and act

At the same time, tighten the way you get paid. Ask for deposits, shorter terms, clearer milestones and faster follow-up on overdue claims. If a client pushes back, compare the deal with the cash cost of carrying their project. Sometimes the real answer is that the job is not worth the strain. ([business.gov.au](https://business.gov.au/guide/guide-to-managing-cash-flow?utm_source=openai))

Your next step is simple: build the 13-week forecast today, decide which work to slow, and start the funding conversation before the squeeze gets worse. If you want a second set of eyes on the numbers and the options, contact CRP today about turnaround support. CRP coordinates independent qualified professionals. This article is general information only and is not legal, financial or lending advice. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))