Have you ever asked yourself, “If my business is profitable, why isn’t there ever enough cash in the bank account?”

This is one of the most common—and often one of the most misunderstood—challenges faced by small and medium-sized businesses.

A company can be profitable and growing while still facing cash flow pressures. The problem often stems from the time lag between when a sale is made and when the customer actually pays—sometimes 30, 60, or 90 days later in B2B transactions. In the meantime, salaries, suppliers, and sales tax must still be paid. That is why strong profitability does not necessarily guarantee sufficient cash flow.

Why is this issue particularly relevant in Belgium?

Let’s look at the numbers.

According to Atradius, 84% of Belgian suppliers face late payments from their B2B customers, while overdue invoices account for approximately 28% of invoiced B2B revenue.

This raises the question:

“If customers pay late, who covers the shortfall?”

In practice, it is often the companies themselves that do this, using their available cash, lines of credit, or even supplier credit.
The process is simple: you sell → you invoice → you wait → payment is delayed → you have to bridge the gap.

So this isn’t necessarily an exceptional situation: it’s an integral part of the operating cycle.

How do small and medium-sized businesses respond when cash flow becomes tight?

Ask yourself this question: “What would I do if one of my major clients were 30 days late in paying me?”

Most companies combine several solutions:

• Available cash — easy to access, but it reduces your financial cushion and your ability to self-finance, for example, to take advantage of future opportunities.
• Credit lines / overdrafts — flexible, but interest and fees can add up if their use becomes a regular occurrence.
• Factoring — allows you to quickly convert accounts receivable into cash. In Belgium, the market was worth approximately 138 billion euros in 2024, according to the OECD, but this solution involves fees and can result in a significant administrative burden.
• Supplier credit —often underestimated, but it can entail indirect costs, such as the loss of early-payment discounts, less favorable terms, or a deterioration in relationships with suppliers if these payment terms are imposed on them.
• New capital injection — no repayment obligation, but potentially very costly due to dilution of equity.

But the real question is: Are we treating the symptom or the cause?

Is the real problem financing… or working capital?

In many cases, cash flow problems do not stem primarily from a lack of financing, but from a poorly managed need for working capital.
Before taking out a loan, it is therefore important to understand where cash is tied up and to anticipate periods when a shortfall might arise.
A good place to start is to prepare a 13-week rolling cash flow forecast, supplemented by a 12- to 18-month projection.
Next, you need to test different scenarios:

• What happens if customers pay 20 days later than expected?
• What if sales drop by 10 to 20 percent?
• What if inventory levels or production costs rise?
• What if a major customer delays payment?

Cash flow forecasting thus becomes a true early-warning system, allowing you to take action before a liquidity problem arises.

Do you really understand your cash cycle?

Three key indicators are used to monitor working capital needs:

• Average customer payment period: the average number of days between invoicing and the collection of accounts receivable.
• Average inventory holding period: the average number of days that inventory remains on hand before being sold or consumed.
• Average supplier payment cycle: the average number of days between receiving a supplier invoice and paying it.

These three indicators make it possible to track the cash conversion cycle and, more broadly, changes in the company’s working capital requirement (WCR).

Ask yourself these questions regularly: Are my customers paying more slowly? Is my inventory increasing? Am I paying my suppliers before collecting payment from my customers?

What Should Be Done Before Financing the Deficit?

Before seeking additional financing, start by addressing the key factors affecting working capital: Invoice promptly, systematically follow up on late payments, tailor credit terms to customers’ risk profiles, reduce slow-moving inventory, improve your purchasing forecasts, and negotiate supplier payment terms that align with your own collection cycles.

The principle is simple:

Plan ahead → optimize your working capital → finance only the remaining balance.

The goal is not simply to remain profitable, but to build a company that grows profitably while generating cash flow, rather than consuming it.

How FWAY Can Help You:

Your need: sound financial management, with regular monitoring of your cash flow and working capital requirements.

Our solution: FWAY acts as your “CFO as a Service” and supports you in the financial management of your business: setting up cash flow forecasts, management reporting, tracking cash inflows and outflows, analyzing and optimizing working capital needs, as well as proactive support to anticipate liquidity pressures and support your growth decisions.

The goal: to give you a clear picture of your cash flow so you can anticipate your needs, make the right decisions at the right time, and finance your growth in a controlled manner.

Publication date:
August 26, 2026, at 11:25 a.m.