The payback period is fourteen months. The overdraft is reviewed annually.

A business can acquire customers profitably, hold a healthy LTV to CAC ratio, and still run out of cash. The reason is hidden in the timing.

By Steve 5 min read
Abstract bridge artwork for The payback period is fourteen months. The overdraft is reviewed annually.

There is a particular kind of distress that arrives in businesses where nothing is going wrong. Acquisition works. Customers stay. The unit economics, tested against any of the usual benchmarks, look respectable. And yet every month the cash position is tighter than the month before, and the finance conversation has quietly shifted from investment to facility headroom. This is almost always a timing problem rather than a profitability problem. The cost of winning a customer is paid in a lump, up front, in cash. The return arrives in slices, over…

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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.

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