Securing liquidity



Securing liquidity: active working capital management

Securing liquidity is the basic prerequisite for companies to survive in times of crisis. You should therefore work specifically on keeping sufficient cash on hand.

In addition, there are numerous ways to build up liquidity in the medium to long term. Our experts will be happy to advise you on the development of intelligent process and control systems, working capital optimization and the use of supply chain finance instruments.

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Agility and foresight

Act Fast

Strict cash management is required to remain liquid during the long phase of the pandemic and in the event of geopolitical disruptions to the supply chain. To this end, set up a cash office in which not only purchasing, sales and the finance department but also production management are integrated. Control of this by the company management is pivotal. This team creates weekly liquidity plans and defines an alarm system. Using this method, if continuous monitoring is ensured, measures can be taken
to secure short-term liquidity.Strengthen liquiditywit 3 simple measures: Suspend the use of discounts, instead renegotiate and make better use of payment terms. Reduce stocks to a minimum. Deliver against prepayment, react immediately in case of delayed payment by customers

Move forward & beyond

Based on the liquidity secured in the short term, you should also optimize your working capital with measures that are effective in the medium and long term. This way, you can protect yourself against possible liquidity shortfalls and create additional room for maneuver of investments and the future upturn.Optimization in the three areas of liabilities, inventories and receivables are often possible through in-depth process analysis and adaptation. Digital solutions should be introduced, if not
already in use throughout. Clear responsibilities help to drive the identification of improvement potential and its implementation. It is also important here that top management and specialist departments are involved and that the task of working capital optimization is not perceived as an isolated project of the finance department.

Overview: Implementation of the actions


Our expert in securing liquidity

Thibault Pucken

COO & Managing Director Contact

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