Motorsport runs to a calendar. Entries, parts, tyres, travel and staff are paid for before and during the season. Income from drivers, customers and sponsors often arrives later or in instalments. The gap between the two is where cash runs short.
Where the cash goes
- Season entries, circuit deposits & licences paid in advance
- Stock & parts bought for the whole season up front
- Customers paying race by race or after the event
- Sponsorship invoiced late or paid in arrears
- Accident damage paid for before it is recharged
- Staff costs that continue through the winter
Build a month-by-month cash forecast
A profit forecast shows whether the year works. A cash forecast shows whether each month works. Map every payment in and out against the month it actually lands, using the race calendar as the spine.
The forecast shows the low points weeks in advance. It also shows how much cash the business needs at the start of the season to reach the end of it.
Change when you get paid
- Take deposits when a seat, entry or booking is confirmed
- Set staged payments ahead of each round rather than after it
- Invoice damage, testing & extras within a week of the event
- Agree sponsorship payment dates in the contract
- Stop further work for customers with unpaid invoices
Change when you pay
- Negotiate supplier terms that match your income cycle
- Buy stock in batches through the season, not all at once
- Match staff contracts to the calendar where it is fair to do so
Chase what you are owed
Credit control is often the quickest fix. Keep a weekly list of who owes what and for how long and chase every invoice on a fixed day.
Plan the winter
The off season is when cash is lowest and fixed costs carry on. Winter work such as rebuilds, testing, coaching or hire income can carry part of those costs. Plan it alongside the race calendar rather than after it.
SureArm builds cash forecasts and credit control systems for motorsport businesses as part of its Strategic Improvements work.