Value Proposition:
A single forecast gives you a “number,” but liquidity scenarios provide risks + decision boundaries.
This template builds a multi-scenario liquidity forecast based on clear Drivers (Collections/Delays/Mandatory Payments/FX),
then outputs: Week of shortfall in worst case + Required financing amount + Action list.

In 20 seconds: What will you get?

• Base Best Worst: Three scenarios on the same structure (Opening/In/Out/Closing).
• Drivers Table: Adjustable assumptions (DSO, Collection %, Delay days, FX, Payment slippage).
• Worst Case Scenario: Collection delays + Payment pressure + Sales decline (optional) simultaneously.
• Liquidity Sensitivity Analysis: Test the impact of each Driver individually (IBR-style) on the minimum balance.
• Liquidity Stress Testing: Compound shocks (Shock Packs) that can be activated with a click.
• Shortfall Alerts: Shortfall warning + Minimum Cash Buffer + Funding Required.
• Action Playbook: Financing/Deferral/Acceleration actions linked to each level of shortfall.
• Waterfall Explanation: Why did Base differ from Worst? (Driver impact breakdown).
• Dashboard: Expected minimum balance for each scenario + Week of Shortfall + Required Facility.

Suitable for

• Companies with fluctuating collections (high DSO) or seasonality in payments.
• Treasury teams managing bank facilities/short-term financing.
• Financial management looking to “Stress Test” before expansion/investment/distributions.

Not Suitable for

• Entities lacking expected data for collections and payments (the scenario will be based on guesses).
• Those seeking only long-term budgeting—this is an operational liquidity model for short/medium term.

Single Forecast / Multi-Scenario Forecast

Before Use: 5 Symptoms that Liquidity is “Not Shock-Resistant”

• The forecast changes weekly without documenting assumptions.
• No clear number for shortfall in Worst Case nor funding plan.
• Payments are deferred randomly instead of prioritizing based on impact.
• A two-week collection delay causes a sudden crisis without early warning.
• Inability to explain to management: What is the most impactful Driver on liquidity?

After Implementation (Two Points Only)

• Risk Map: Shortfall Week + Required Funding + Clear Stress Test.
• Decision Readiness: Action Playbook linked to shortfall drivers instead of reactive.

How Does the Scenario Template Work Practically?

1) Build Base Case (Reference)

• Forecast weekly collections from AR based on DSO/Collections plan.
• Forecast weekly payments (Mandatory vs Discretionary).
• Opening cash + Net movement = Closing cash.

2) Build Best Case

• Faster collections/higher collection rate.
• Delay some non-critical payments (optional).
• Improve FX or avoid a large expense (based on company reality).

3) Build Worst Case (Stress Scenario)

• Delay in key collections (e.g., 20–30%) for two weeks.
• Increase in mandatory payments or pressure from suppliers/taxes.
• Deterioration of one or more conditions (FX / margin / unexpected cash out).

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