The three most important questions at present are:
- How much free liquidity do I have available today?
- How long will my financial resources last?
- How resilient is my medium-term financial planning and what does the recovery from the COVID-19 crisis look like?
Here you will find our three most urgent recommendations
Since time is a critical factor in the current situation, we work with an efficient, standardised approach. Our quick check is designed to help your company to quickly meet the documentation requirements in order to obtain approval of loans or government support measures
It is existential for your company to reduce cash drain and cost burdens to the absolute minimum soon. Together with you, we can develop effective, sustainable measures which can be rapidly implemented
Cash management during the COVID-19 crisis
Our three most urgent recommendations for stabilising your business:
Create a current liquidity status for each relevant company within your group, if necessary. This liquidity status is set up as follows (on a key date each):
+ available bank deposits and cash at hand
+ contractually existing, free credit lines
- due liabilities
Consider any special cases, such as restrictions on capital movements and restricted cash (e.g. pledged cash deposits). Depending on the scope for action, we recommend that you update the liquidity status daily or weekly
For further information refer to the following link
- Create a short-term liquidity plan for the next three to six months
- Due to the current uncertainties, we recommend working with different scenarios (moderate or stronger course of the COVID-19 crisis)
- Derive the amount and timing of possible additional liquidity requirements from the short-term planning in order to be able to apply for further government support measures in addition to the measures already initiated
- Relevant information from the employment agency on the short-time working allowance
- Relevant information of the Federal Ministry of Economics and Technology (BmWi
- Secure your liquidity planning through written documentation; clearly indicate the effects of the COVID-19 crisis
In addition to short-term liquidity management, we recommend the preparation of a budget statement at least for the current and following fiscal year – details
The medium-term financing requirements and the expected development of your company after the immediate COVID-19 crisis should be clarified
Here, too, a comprehensible presentation of the assumptions and special effects from the COVID-19 crisis is recommended in order to fulfil the requirements of a medium-term financing
For further information please refer to the following link.