How many months of cash you actually have — and whether your growth is outpacing your capacity to fund it.
Rob Pegg BA Hons FCILT | RLP Advisory Services Ltd
25+ Yrs Ops Leadership · FCILT Chartered Fellow
Overtrading is one of the most common ways profitable businesses fail — not because the work isn't there, but because growth outpaces the cash available to fund it. Enter your numbers below to see your actual runway against the standard benchmark, before it becomes a crisis rather than a warning sign.
16%
of UK businesses hold no cash reserves at all, leaving them fully exposed to any disruption
ONS, June 2025
1 in 193
UK companies entered insolvency in the 12 months to April 2026
Insolvency Service / GOV.UK, April 2026
Your numbers
£60,000
£25,000
Your current cash runway
0 months
0 months3 months6 months9+ months
Reserve target
Cash needed
You're short by / ahead by
3 months (minimum standard)
£0
£0
6 months (healthy buffer)
£0
£0
How this works: cash runway is simply your available cash divided by your monthly operating costs — how many months you could keep trading if no further income arrived at all. The widely-used benchmark across UK financial guidance is 3 to 6 months of operating costs held in reserve: 3 months is treated as the minimum standard, 6 months as a genuinely healthy buffer. Businesses with longer payment terms, seasonal trade, or volatile demand should lean toward the higher end of that range. This is a snapshot based on your current position, not a full cash flow forecast — it doesn't account for incoming receivables, seasonal variation, or planned changes in cost base. A proper forecast looks forward; this tool tells you where you're standing right now.
This is a planning tool, not financial advice. If your runway is below the 3-month threshold, or you're already relying on overdraft or credit to cover short-term gaps, that's worth a conversation with your accountant or an experienced operator before it becomes urgent rather than after.
Growing fast and feeling the cash strain? Get in touch.