2 min read
Why a reserve matters
A cash buffer lets you absorb a bad month, a late payer or a sudden cost without panic — and to seize an opportunity when it appears. It is the difference between a wobble and a crisis.
Sizing it
Base the target on your essential fixed costs — rent, wages, core suppliers — which your cash-flow forecast shows. Three months is a common floor; seasonal or volatile businesses should aim higher.
What it means for you
Pair a reserve with an arranged facility for the biggest gaps. Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Is three months of costs enough?
It is a sensible floor for a steady business. Seasonal, project-based or volatile businesses should hold more, because their income arrives less predictably.
Should I hold cash or rely on a facility?
Both. A reserve self-funds small, frequent shocks cheaply; an arranged facility handles bigger gaps without draining it. Together they give the most resilience.
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