Revenue grew 34%. The overdraft grew 60%.

Profitable growth can drain cash faster than a bad year does, and the arithmetic that decides how fast a business can grow on its own money is rarely on the board pack.

By Steve 5 min read
Abstract bridge artwork for Revenue grew 34%. The overdraft grew 60%.

A business finishes the year 34% larger and more profitable in absolute terms than it has ever been. The overdraft, which was a comfort blanket in January, is now a working tool used every month, and it has grown faster than the revenue that supposedly justifies it. Nobody has done anything wrong. No customer has defaulted. The management accounts are clean. This is one of the most common and least discussed failure modes in a growing SMB: growth that is profitable on the P&L and cash-negative in practice. It is…

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