With President Trump's recently introduced trade tariffs coming on the

heels of National Insurance hikes, UK businesses are grappling with

compounding economic pressures that are squeezing margins from

multiple directions. Financial experts warn that in this challenging

climate, robust cash flow management is no longer just a banking

requirement, but a survival tool.​​

"Many businesses have something to show the bank, but in fact, it's not being

managed as well as it should be," warns Tatiana, a financial specialist at

Prompt Business Strategies. "With tariffs already affecting trade flows, this

approach is not just risky—it's potentially disastrous."

From Keeping Banks Happy to Business Protection

Many businesses view cash flow forecasting primarily as a requirement to appease lenders and maintain financing relationships. This perfunctory approach fails to leverage the full strategic value of proper financial planning.

"What we're seeing is that businesses who create cash flow forecasts just to keep their banks happy are the least prepared for sudden market changes," Tatiana explains. "Those who use it as a genuine management tool can anticipate problems and pivot quickly."

Experts suggest that amid potential tariff introductions, companies should move from quarterly forecasting to weekly or even daily cash flow monitoring to detect emerging issues before they become critical.

Real-World Protection Through Scenario Planning

For businesses potentially affected by changing trade regulations, scenario planning has become essential. This approach allows companies to model various outcomes and prepare contingency plans before problems materialise.

"We start with a base cash flow for the business as it is, and then begins the scenario planning," says Tatiana. "With the new tariffs already in effect, we're helping clients model exactly how their increased import costs affect cash reserves and how to adjust payment schedules with the reduced cash flow from impacted markets."

One manufacturing business with an £85 million turnover used detailed forecasting during a restructuring process, running multiple scenarios to demonstrate viability under challenging conditions.

"They were very dependent on debtor money coming in on specific days to pay salaries, lenders, and interest," Tatiana noted. "Their detailed scenario planning ultimately helped secure the sale of the business by showing resilience even in downturn situations."

The Time Factor: Getting Help When It Matters

With many businesses already stretched thin, finding resources to implement more sophisticated cash flow management can be challenging.

"When issues appear, it creates a vicious circle," said Tatiana. "You need more time to manage the cash flow, but you also need more time dealing with operations and trying to save the business."

Tatiana explains the approach her firm takes: "We turn it around really quickly in terms of setting it up and running it for them. Then the ultimate goal, what we call a success, is when we train the client and they bring it

in-house to manage it themselves."

Beyond Banking Requirements

While accounting software packages often include cash flow forecasting features, experts recommend testing their accuracy by comparing projections against actual results and examining how they handle unusual circumstances or sudden market changes.

Finance specialists emphasise that with international trade policies in flux, the distinction between cosmetic cash flow reporting and strategic financial management has never been more important.

"It enhances lender confidence, absolutely," Tatiana concludes. "But more importantly, it gives business owners control during uncertain times. When political decisions could affect your bottom line overnight, you need more than just something to keep your bank manager satisfied – you need a financial navigation system."