Cash Management/ Liquidity Control

Solvency is essential for companies – especially in a difficult macroeconomic environment. Professional cash management – active liquidity control – expands the financing scope and prevents insolvency.

Overview

As a result of falling sales, disrupted supply chains, rising raw material costs, and the energy crisis, the focus has once again shifted to securing liquidity.

For entrepreneurs, shareholders, and supervisory bodies, three questions are particularly relevant: How much liquidity is available at present? How long will the available financial resources last? How reliable is the financial planning, especially in the event of an acute crisis?

The task at hand is the determination of the company-wide cash status, establishment of reliable monitoring of plan/actual deviations and assurance of predictability with appropriate forecasts and calculations. This also includes a short-term liquidity forecast and regular liquidity updates. On this basis, liquidity-improving measures can then be identified and implemented with precision.

Services

Liquidity enables freedom

Questions for our team

What are the main advantages of the support provided by FTI-Andersch?

As a specialist in advising companies in challenging situations, we have extensive experience in optimizing financing structures, cash management and liquidity control. We focus on effective measures which can be implemented in the short term. At the same time, we also examine measures to reduce working capital in terms of their medium- and long-term effects. In this way, we can ensure not only project success but also added value for the entire company.

When do companies have to deal with cash management and liquidity control?

There is a broad spectrum of possible signals here – from increasing borrowing requirements without major investments to supply bottlenecks in the supply chain. Cash management and liquidity control are particularly critical when the financing framework is fully exhausted – and at the latest when the ability to service debt is at risk and insolvency looms. The good news is that together we can achieve initial successes after just a few days or weeks – reducing inventories, negotiating the passing-on of raw material price increases to customers, or introducing factoring.

What conflicts of interest can arise when optimizing working capital?

In the short term, for example, reducing the payment terms of suppliers can counteract the planned savings in purchasing, or inventory reductions in the warehouse can jeopardize the availability of production equipment. Long-term strategic goals must also be reflected: for example, if suppliers are changed for cost reasons, product quality or even delivery capability may be affected – with consequences for the competitive position. Especially now, when supply chains are under pressure, holding more inventory or sticking to established supplier relationships despite higher costs may make sense. That is why we always analyze the planned measures holistically and precisely work out existing and often complex interrelationships.

How we help our clients

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