Revenue grew 31%. The overdraft doubled.

Profitable growth can drain cash faster than it generates it, and there is a simple ratio that tells you the growth rate your business can fund from its own operations.

By Steve 12 August 2026 5 min read

Two things can be true at once: the business is more profitable than it was last year, and it has less money than it did. Owners in this position often assume something has gone wrong: a bad debt, a cost overrun, sloppy billing. Sometimes that is right. More often, nothing has gone wrong at all. The business has simply bought growth, and the invoice for it lands before the benefit does. Growth is purchased with working capital Every extra pound of revenue arrives attached to a set of cash obligations…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

Revenue grew 31%. The overdraft doubled.

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