Liquidity forecasts, cash generation and agreements with your bank
These are uncertain times. The impact of the coronavirus and government measures to limit its spread have repercussions on society and daily life. There is a substantial probability that you as an entrepreneur, either directly or indirectly, will notice the consequences of the changed economic and financing climate. Insight into your financial position and control of income and expenditure is therefore particularly important during this period.
The specialists at Baker Tilly Corporate Finance will be happy to work with you to ensure that your business gets through the coming period as well as possible, thereby guaranteeing continuity. We can offer you support in areas such as the following:
Preparation of a liquidity budget on the basis of possible scenarios
By listing out the liquidity flows on a daily basis and providing forecasts for them for the coming weeks, potential short-term liquidity issues can be identified. We support you in the preparation of a scenario-based liquidity budget. Expectations with regard to the percentage decline in turnover, the period over which this decline is likely to extend and subsequently the period required for recovery, play a central role in this.
Support with the application for temporary financing and agreements with the bank
The government has taken various measures to assist companies at this time, including extending the BMKB scheme and the GO facility. These enable banks to provide and extend credit more easily and more quickly. We can assist you in the application for this temporary financing and in facilitating the documents to be supplied to the bank. We will also be happy to support you in any discussions you may have with the bank or other financers regarding additional agreements concerning current financing. This may include adjusting bank covenants and repayment agreements, realising longer commitments and creating / expanding liquidity buffers.
Advising about the sale of part of the business
If it is already apparent that rearranging financing will not provide the desired financial scope and continuity and, furthermore, that tax and personnel schemes will not provide sufficient relief, the decision could be taken to sell part of the business. This may help you to acquire the necessary liquidity. We can offer you advice regarding such a sale process.
This content was published more than six months ago. Because legislation and regulation is constantly evolving, we recommend that you contact your Baker Tilly consultant to find out whether this information is still current and has consequences (or offers opportunities) for your situation. Your consultant will be happy to discuss the latest state of affairs with you.