Rapid financial assistance for businesses

Roland Berger's program to secure liquidity gives businesses the tools to implement internal and external measures at just the right time to remain solvent in a crisis or special situation. For many companies, establishing a Cash Office will be a necessary basis for securing liquidity. And then there are external measures such as the possible utilization of state aid, especially in the coronavirus crisis (KfW and guarantee programs). What is important is that at the end of the process all of the measures work together to provide companies with the liquidity they need.

Internal measures – Putting all expenditures under the microscope

Internally, the first thing to do is to create a structure to allow the program to secure liquidity to be implemented. A Cash Office is essential for this. With this central instrument in place, planned payment flows become transparent and targeted. Specifically, this entails evaluating the risk of every planned inflow of cash. And checking all cash outflows to see whether they are absolutely necessary. Based on the daily inflows and outflows, a daily cash requirement can be determined, which quickly gives companies the transparency they need to remain solvent by taking effective ad hoc measures. All relevant levers for reducing expenditure are applied, such as cash pooling, stock optimization, an investment stop/reduction, accounts payable and accounts receivable management, and cost cuts for travel, events or service providers.

Internal measures – Putting all expenditures under the microscope

Internally, the first thing to do is to create a structure to allow the program to secure liquidity to be implemented. A Cash Office is essential for this. With this central instrument in place, planned payment flows become transparent and targeted. Specifically, this entails evaluating the risk of every planned inflow of cash. And checking all cash outflows to see whether they are absolutely necessary. Based on the daily inflows and outflows, a daily cash requirement can be determined, which quickly gives companies the transparency they need to remain solvent by taking effective ad hoc measures. All relevant levers for reducing expenditure are applied, such as cash pooling, stock optimization, an investment stop/reduction, accounts payable and accounts receivable management, and cost cuts for travel, events or service providers.

Spotlight on Germany

During Covid-19 crisis, companies in Germany are granted easier access to the KfW and guarantee programs. Under the KfW program's umbrella, the special "Corona" program helps by expanding the scope of application of the available aid, increasing the amount of risk assumed by the federal government and relaxing revenue limits. This makes it possible for larger enterprises to access such programs as well

There are also guarantee programs available, and the examination and approval procedures for these have now been accelerated. They are characterized by a higher appetite for risk than the KfW programs and are targeted at companies in special situations. Applicants have to prove their eligibility for assistance under the program and have a viability concept for their business.

Whether an application is approved will depend on the level of financial need and the crisis management planning that has been done. Roland Berger supports companies throughout the whole process of accessing state aid, documenting the application to define actual liquidity needs, and doing the crisis management planning. In addition to the formal documentation requirements, Roland Berger also coordinates a parallel process of stakeholder management. When all the different stakeholder interests are coordinated, the company will benefit from additional support in its bid to remain solvent.

With our comprehensive program to secure liquidity , we offer a structured solution to rapidly stabilize companies that are threatened by financial difficulties. So your business too can overcome a crisis or special situation systematically and well prepared.