How to Secure the Viability of Your Business in Times of Crisis
Almost no industry is unaffected by the corona crisis. Broken supply chains and slumping demand lead almost immediately to the endangering of the liquidity of companies. Payment delays and defaults by customers as well as the breaking away of suppliers can quickly put one's own solvency at risk. Those who have the liquidity of their business partners reliably in view can, however, take salvaging measures in good time and bring their own companies safely through the crisis.
Since mid March, the drastic measures intended to reduce the rate of infection in Germany have had a huge effect on our private and business activities. The doors to businesses remain closed, companies are applying for short-time-working benefit for their employees and the international trade in goods is stagnating due to trade restrictions. The economic consequences of the pandemic can already be felt and it is difficult to predict what further effects they will have on the economy.
Before the spread of the coronavirus the strong economy provided good sentiment among General Managers and Finance Directors – risk management was a low priority. But now the current crisis makes it clearer than at almost any time before how important it is for the survival of a business to identify risks such as the threat of liquidity problems with business partners as early as possible.
However, it is not yet too late to provide systematic support for your own risk management. Software solutions can be implemented quickly and without significant lead times. The balance sheet analysis software tool FINOYO is available out-of-the-box. Within the shortest time, companies obtain the possibility to perform efficient and reliable risk management. Access via a web browser guarantees the ability of departments to continue working, even from home.
Creditworthiness Evaluation Through Balance Sheet Analysis
The creditworthiness of companies provides an indication of whether they are willing and able to meet their credit and payment obligations. A well-proven and established method for evaluating the creditworthiness of business partners is balance sheet analysis. On the basis of the figures published by companies, conclusions can be drawn about the liquidity, profitability and capital structure of the firm being investigated.
With the financial analysis software FINOYO the effort required to carry out balance sheet analysis is minimized. Financial information can be imported easily and aggregated automatically to provide meaningful ratings, which form the basis for further decisions.
Liquidity Simulation Takes into Account the Current Limitation Measures
As an immediate reaction to the current special challenges to risk management we have extended FINOYO with helpful functions. In addition to the analysis and evaluation of annual report information the tool now allows for the compilation of target figures and provides a liquidity simulation.
Just like other business procedures, the measures introduced to limit the spread of the coronavirus have an influence on the individual balance sheet positions of companies. For example, companies suffer from loss of turnover due to shops being closed, reduce their personnel costs by applying for short-time-working benefit or are unable to fulfil orders due to a lack of raw materials and products.
The new functions offer the possibility to simulate the effects of the restrictions on the liquidity and the balance sheet rating and to extrapolate using the balance sheet from the previous year or the latest inter-yearly financial report. The tool therefore allows a prediction of the future development of business partners and gives companies time to react to the threat of defaults on payment or supply bottlenecks.
Reporting, Task Management, Limit and Exposure Administration and Much More
In addition to balance sheet analysis, FINOYO offers numerous further functions. The quickly available and easy-to-operate tool supports the management of limits and exposures on the basis of the evaluation of invoice document lists, makes sure that processes are adhered to with its integrated task management system and thanks to its numerous reports provides an overview of the debitor and creditor portfolio.
