The bank asks for a forecast that differs from your internal recovery report
Bridge bank requested forecast format/assumptions to internal cashreport without silently changing underlying facts.
Corporate Recovery Partners
01 / 06
The same business appears to have two cash positions
A hypothetical bank workout team asks for a forecast in its own format. The borrower copies figures from an internal recovery report, but the resulting closing balance differs. Reconcile the difference before submission. Different layouts may describe different periods or assumptions, yet both reports should be traceable to a coherent account of the business's position.
Record each report's start date, covered entities, bank accounts and treatment of estimated receipts. Ask what the bank's requested categories mean where they are unclear. Do not force an internal item into a convenient category simply to complete the form. Preserve the original internal report so the transformation into the requested format can be followed.
Business.gov.au's cash-flow guidance explains opening balances, cash movements and closing balances, with estimates identified. Check those relationships in both reports. Reconcile differences in timing or classification separately from changes in the underlying facts. An unexplained balancing entry makes a forecast look complete while hiding the very issue the bank needs to understand.
In the hypothetical example, the internal forecast assumes a customer pays next week, while the bank pack moves that receipt later following new information. Record the evidence and update the internal decision-makers as well. Do not leave purchasing staff using the optimistic date while presenting a cautious version externally. The change needs one clear factual explanation.
Have the accountant or relevant adviser check the reconciliation and unresolved assumptions. Include qualifications needed to understand the numbers without burying them in a separate file nobody can find. Ask about the requested deadline and format if completion is uncertain. Do not treat submission of a forecast as acceptance of a proposed facility variation.
Retain the submitted version, source data and reconciliation, then use a controlled process for later updates. CRP can help organise the reporting comparison. The useful result is consistency between what the business uses to make decisions and what it tells the bank, with any differences explained rather than disguised by the format.
