Frequently asked questions
Should every start-up think about liquidity planning?
The structured planning of liquidity is elementary when dealing with the irregular costs and profits of a start-up phase. It protects you from the inability to pay and also helps you optimize unused reserves. Maintaining excessively high reserves is not productive, as they typically do not generate profits and can even raise your costs.
What can happen if I don’t plan my liquidity carefully?
Nine out of ten bankruptcies in Switzerland are caused by liquidity bottlenecks. In the short term, a business will be threatened with payment reminders and debt enforcement proceedings; in the longer term, insufficient liquidity reduces a company’s financial standing and creditworthiness, with the result that it will have even more difficulty accessing financial resources in an emergency.
Can planning protect me from liquidity problems?
Planning is only a means, a guide, a management tool. In addition, there’s a long list of practical steps you can take to avoid a financial collapse. These range from efficient invoicing, short payment periods and a systematic reminder process on the client side, to longer payment periods, and advance and partial payments on the supplier side. You could also try optimizing stock levels, leasing instead of buying, and taking out short-term bank loans to secure your ability to pay.
Use the UBS Liquidity Cockpit now to simplify the planning and management of your liquidity.
Our services and cooperations
Plan and manage the liquidity of your business. The UBS Liquidity Cockpit with an interface to bexio business software combines revenues, expenditures and budget figures into an overview that always remains current. The tool lets you adjust your budget figures at any time, making targeted control of your liquidity possible.