“Staying in the flow” – our 4-part series on liquidity management
What is the current state of the company’s financial stability? At the very least, a “gut feeling” that something is wrong must be taken seriously and serve as the trigger for a comprehensive review. If significant payment arrears have occurred and reminders are piling up, it may already be too late. If insolvency occurs, corporations and companies without personally liable partners are automatically subject to a mandatory filing requirement under Section 17 of the German Insolvency Code (InsO). Under these circumstances, it becomes difficult—if not impossible—to save a company from collapse.
Why timely assessment is essential
Our experience shows that many companies only address their liquidity management once problems have already become advanced.
However, ensuring solvency should be an integral part of corporate management. At the first sign of trouble, it must become a mandatory task for management. This allows the company to know if it is legally required to file for insolvency and helps avoid liability risks. Assessing a company’s solvency involves a multi-stage analysis.
Would you like an insight into how we conduct an assessment?
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