Avoid Costly Mistakes with Cash Flow Modelling
Managing cash flow effectively remains a critical concern and a significant challenge for contractors in today's market. While large projects drive growth, they can also cause significant financial hurdles. Understanding your cash flow can be a powerful tool to help you better assess new projects – before you commit. The conversation with your broker and an experience surety underwriter can help you consider different scenarios and make strategic business decisions. Here's what you need to know about Cash Flow Modelling.
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TEXT: Project Cash Flow Modelling.
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The right relationship can facilitate the conversations you need to see around corners.
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Travelers Canada Surety experts use our project cash flow modelling to help inform your bidding strategy in context of your overall business.
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We use real project data to model project cash flow and its effect on the overall financial health of your business. This can help you with better project selection, cash management and financial risk management insight to help your business succeed.
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Seeing your cash flow through time could affect your decision about the selection of a project and its alignment with your business goals.
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With Travelers Canada Surety, great relationships are made with a combination of the right people and the right services.
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Our project cash flow modelling is just one more way Travelers Canada Surety takes relationships beyond the bond. Talk to your surety broker today. Visit travelerscanada.ca/construction-surety.
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Travelers Insurance Company of Canada, The Dominion of Canada General Insurance Company, and St. Paul Fire and Marine Insurance Company (Canada Branch) are the Canadian licensed insurers known as Travelers Canada. This document is provided for informational purposes only. It does not, and it is not intended to, provide legal, technical or other professional advice, nor does it amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers Canada. Availability of coverage referenced in this document can depend on underwriting qualifications and relevant laws and regulations. Travelers Canada disclaims all warranties whatsoever.
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What is Cash Flow Modelling?
Travelers Canada's Cash Flow Modelling provides a comprehensive analysis that evaluates potential scenarios and their impact on your business’ financials. The goal is to provide you with fulsome information so you’re able to make strategic decisions, enabling your business for sustainably grow and avoid costly mistakes.
Our surety underwriters can help forecast upcoming cash-flow requirements and evaluate the potential risks associated with those projects.
The sophisticated, analytical approach to our Cash Flow Modelling can enhance the overall financial stability of your construction businesses. Helping you avoid issues before they happen.
Leverage your surety bond provider relationship to go beyond the bond
With Travelers Construction Surety, the right people and the right services create great relationships.
When you're ready to go beyond the bond, connect with your broker to explore our comprehensive suite of value-added services designed to enhance your business performance.
How does a Cash Flow Modelling Work?
Travelers Canada’s Cash Flow Modelling evaluates ongoing projects, key financial indicators, and historical performance metrics. This analysis integrates comprehensive underwriting data with actual project performance. This includes a balance sheet and an income statement to calculate cash-flow projections based on the existing backlog of work.
Cash Flow Modelling incorporates multiple dynamic factors to illustrate how projections evolve, including:
- Payment terms
- Retainage
- Material and equipment purchases
- Slow receivables
- Profit fades or gains
Consider Cash Flow Modelling as strategic financial preparedness—a proactive approach that enables contractors to anticipate potential challenges before they materialize, preventing unexpected financial disruptions.
Peer Group Analysis
We know the construction business can be tough, and any opportunity to gain an edge is invaluable in an increasingly competitive environment. Wouldn’t you like to know how your balance sheet compares to that of your peers? Or if you have enough capital in your company to support the growth that you’re looking to achieve?
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