Growth uses cash before it makes cash. Why a growing business runs short, and what to look at first: terms, debtors, invoicing, stock and timing.
By Patrick Artese, Founder, Arthouse Advisory
The short answer: growth uses cash before it makes cash. You pay for staff, materials and stock now, and customers pay you later. The faster you grow, the bigger that gap gets. To fix it, close the gap: get paid sooner, line up what goes out with what comes in, and hold less cash in stock and unfinished work.
Why profit and cash part ways
Profit is what you've earned. Cash is what you've actually collected. In a growing business the two can move in opposite directions for months. A big new contract can look great on the profit and loss and still drain the account until the invoices are paid.
Waiting is a big part of it. Australian small businesses were paid an average of 6.0 days after the due date in the June 2026 quarter, and customers took an average of 22.9 days to pay (Xero Small Business Insights, June 2026 quarter). Large businesses paid about 3 in 10 small business invoices after more than 30 days in the second half of 2025 (Payment Times Reporting Regulator, August 2026).
Where to look first
1. Your payment terms. Are they set, written down and on every quote? Do some customers have 60 or 90 days just because nobody ever said otherwise?
2. Your debtors, by age. Who owes you, and for how long? A short weekly look and a steady routine for following up often do more than a new system.
3. When you invoice. Invoicing at month end, or only when a job is fully finished, adds weeks. Would deposits, progress claims or staged invoices suit your work?
4. Stock and unfinished work. Cash sitting on shelves or in half-finished jobs isn't in the bank. Look for slow-moving lines and jobs that stall.
5. What goes out, and when. Line up the big outgoings (wages, tax, supplier runs) against when money actually comes in, not when it's due.
A 13-week view
The most useful single tool is a rolling 13-week cash forecast: a simple week-by-week list of what you expect to come in and go out. It won't be exact, and that's fine. Its job is to show you a tight week before you get there, while there's still time to act.
Growth isn't the problem
Tight cash in a growing business isn't a sign you're doing something wrong. It's a sign the business needs a different rhythm for collecting and spending as it grows. Deal with it early and it's routine. Leave it and it starts making decisions for you.
Frequently asked questions
Why do I have less cash when sales are up?
Because you usually pay for the work before your customers pay you. More sales means more cash tied up in that gap until the invoices are paid.
What is a 13-week cash forecast?
A rolling, week-by-week list of the cash you expect in and out over the next quarter, updated weekly. It shows tight weeks early enough to act.
How can I get paid faster?
Put clear terms on every quote, invoice as soon as you can (including deposits or progress claims where they suit), and follow up overdue accounts on a regular weekly rhythm.
Where to go next
See how we follow a sale from quote to cash, or read Busy isn't the same as profitable. Start with the free Self-check or talk to Patrick.
Sources: Xero, "Late payment report", 25 August 2026 (Xero Small Business Insights, June 2026 quarter). Payment Times Reporting Regulator, Regulator's update, August 2026 (reporting cycle 10, July–December 2025: 30.2% of reported small business invoices paid after more than 30 days).
About the author: Patrick Artese is the founder of Arthouse Advisory, a business adviser with 15+ years of experience across 10+ industries. Read Patrick's story
