Phase 1 · Live · Contract Management
Contract Affordability Checker
Taking on a large contract without modelling the cash gap is one of the most common ways UAE SMEs destroy profitability. This tool calculates your peak cash gap during delivery, what facility you need to bridge it, and what happens if the client pays 15 days late.
How to read your result
- No funding required — Clear: Your available cash and facility cover the delivery gap. Monitor collection timing closely.
- Funding required, under 30% of contract — Manageable: Arrange the facility before signing. An overdraft or invoice discounting line should cover this.
- Funding required, 30%+ of contract — Stretched: The funding requirement is significant relative to contract value. Negotiate milestone payments or reduce front-loaded cost exposure.
- Cash flow negative, no facility headroom — Critical: Do not sign without a committed facility in place. The contract may be profitable but unaffordable without external financing.
What this tool does not do
- Model multi-milestone payment schedules within a single contract
- Account for subcontractor payment obligations and their timing
- Reflect VAT cashflow on the contract receipts
- Model currency exposure on cross-border contracts
This tool is a decision-support aid and does not constitute financial advice.