2 min read
What to check
Look across a few measures: is cash flow positive and predictable? Are margins stable or improving? Is gearing manageable and not creeping up? Is there a cash buffer? Are liquidity ratios sound? A healthy business scores well across the set, not just on one.
How to monitor it
Review these monthly in your management accounts and watch the trend more than the absolute figures — direction reveals health earlier than any single reading. The financial-ratios cheat sheet and the KPI dashboard help you track them together. Catching a negative trend early lets you act while options are open.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Is profit the best measure of business health?
No — cash flow matters more day to day, since profitable firms can still fail on cash. Health is a combination: positive cash flow, stable margins, manageable gearing and a buffer. Look at the whole picture, not one figure.
How often should I check my business's financial health?
Monthly, through management accounts, watching the trend across a handful of measures. Annual statutory accounts arrive too late to act on. Regular monitoring catches problems while you can still fix them.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.