The fact that liquidity planning is an important topic hardly requires further explanation. Cash is King is a popular saying that certainly holds true in practice. It’s even referred to as the lifeline of every company. But why is liquidity awareness in SMEs so low? And why does this only become a hot issue when it’s nearly too late?
This topic is, in fact, quite similar to your water tap at home. Water is always there and you don’t really think about it. But suppose you run dry, then suddenly, you instantly realise why it’s so important. And in this metaphor towards the company, it will certainly raise awareness. Entrepreneurs who ever lived through such a period, can tell you all about the need for proper planning and are more inclined to take precautionary measures compared to those who aren’t familiar with this yet.
And suppose……… you are, in fact, aware of this and anticipate a period of liquidity shortage, how do you tell this to your financier? This is an important challenge to many SME entrepreneurs. Most liquidity models are incomprehensible for your average SME and don’t provide a basis for determining how much financial leeway it actually has.
And one thing is certain, you won’t be able to talk about financing until you know how much money you need and, more importantly, how quickly you can pay it back. If you want to find out more about this and, above all, hear what solution we have come up with, why not attend Financial Systems in suite 11, 18 May 18 1pm, where you’ll be presented with this challenge.