Projecting cash receipts has taken on a new importance for many companies in the new normal as they struggle to survive in an uncertain business environment.  Many businesses have cut back operations or closed entirely except for skeleton staffs. In the face of a rapidly changing economy and continuing uncertainty, projecting cash receipts is a necessity.

Under these very difficult circumstances the assumptions and methodology you and your collectors have used in the past to project cash receipts probably need to be revised. You need to take a different approach to project cash receipts during the new normal.

Here are some suggestions on how to project cash receipts in the new normal.


Companies which use BI to help forecast cash receipts will need to adjust the assumptions underlying the BI programming. Companies using a mixture of specific estimates for the large accounts making up the majority of cash receipts, and macro assumptions on the many companies making up the balance will need to makes adjustments as well. Companies with the majority of their cash receipts spread across many small accounts will also need to revise their macro assumptions.

Revising your assumptions for cash receipts should take into consideration a number of factors relevant to the new normal including:

  • Industry – Customers in essential industries can continue to operate, while businesses in non-essential industries may be shut down or operating on a reduced schedule. This information is critical to projecting cash receipts.
  • Geography – Non-essential businesses in certain areas may be subject to full or partial shutdown of unknown duration. Your customer’s ability to pay may be impacted.
  • Financial strength – Customers with strong working capital and available credit lines are more predictable when you forecast cash receipts.


Customers that have made promises-to-pay are more likely to honor their commitments making it easier to project cash receipts. Have your collectors keep track of their promises-to-pay so you can have this information available when you need to project cash receipts.

Collectors’ Judgement

Nobody knows the payment habits of your customers better than your collection team. Encourage your collectors to use their judgement when you forecast cash receipts.

Re-invent the way you project cash receipts during the new normal. Revise your assumptions, keep track of promises-to-pay and rely on the experience based judgement of your collection team.

Projecting cash receipts in the new normal will be a challenge. Your job will be easier if you have the technology solutions available in cloud-based credit and collection platforms.

Lockstep Collect is a market leader in cloud-based credit and collection platforms. Lockstep Collect can help you with the technology you need to project cash receipts in the new normal.

If you would like to learn how you can benefit from credit and collection platforms, please contact Lockstep Collect at

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