Why does liquidity vary? Why don’t I have any money? Is the monitoring inadequate?
- Seasonal operations – monitor the monthly sales
- Periods of payment for customers are too long – ask for an advance and/or shorten the periods of payment
- Extend your payment periods when purchasing something
- Do you have too much money tied up in stock? Set a target for turnover, set a maximum target in euros
- Remember to discuss payment matters with your financiers early enough
- If necessary, e.g. a loan and a checking account with an overdraft facility may be helpful
- Remember to invite suppliers to tender on a regular basis