What is a 3 Way Forecast?

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This is a report that includes a Profit & Loss Budget, Cash Flow Forecast and Balance Sheet Forecast. Most lenders/investors want to see these to be confident the business is on track to be profitable, cash flow positive and solvent. A Profit & Loss Budget showing great sales and profit at the end of the financial year is no use, if the business goes bust in the middle due to poor cash flow and Balance Sheet management.