78% of entrepreneurs have or expect to have a liquidity problem, according to a survey* by Stichting MKB Financiering and ONL for entrepreneurs. Only a small part of them indicate that they can turn to a bank with this problem.
As a financial advisor you distinguish yourself in these times by actively thinking along with your customer. That sometimes requires creativity. How do you help an entrepreneur to maintain his liquidity?
Maintaining liquidity
Active debtor
policy Implementing an active debtor policy can have an enormous impact on the liquidity position. Fyndoo Advise calculates the debtor term per period based on financial data. This uses historical trends to make predictions within the forecasting scenarios. Check whether this term matches the payment conditions as agreed with customers. Is it actually higher? Then simulate the liquidity effect of when customers are actively approached to pay within the agreed term. You will be amazed at the impact!
Factoring
There are alternative financiers that offer factoring. In concrete terms, this means that they 'buy up' the receivables from an entrepreneur. This costs a company a percentage of the outstanding debtor amount and in return debtors are 'capitalised'. This shifts this on the balance sheet from debtors to liquid assets. The credit application module of Fyndoo Advise includes various factoring providers where you can apply directly.
Alternative revenue models
If there are cash sales, there are in fact no or minimal debtors. This applies, for example, to hair salons and beauticians, sectors that have been hit hard by the Corona crisis. Nevertheless, in this case too there are opportunities to generate turnover and thus to maintain the liquidity position to some extent. For example, by working with a subscription model. By allowing customers to pay in advance on attractive terms, you can assure yourself as an entrepreneur of turnover and thus organize liquidity.
Do you have questions about how Fyndoo Advise works? Send an e-mail to our service desk via support@fyndoo.com or call 088 - 77 88 920. A team is ready to help you further.
* More about this survey and the results can be found at Stichting MKB Financing.