Financial Services
Liquidity Management
Cash flow visibility, working capital, and covenant monitoring.
Overview
Profitability is an opinion formed over a year. Liquidity is a fact settled every Friday.
Cash is the constraint that gives no notice. A business can be profitable on the income statement and still be one delayed collection away from a difficult week, and the finance team is usually the last to see it coming, because the visibility runs only as far as the bank balance this morning.
These engagements build forward visibility on operating cash. The core deliverable is a rolling thirteen-week cash flow, built from receipts and disbursements rather than derived from an accrual forecast, maintained on a weekly cadence, and reconciled against actuals so the model earns its credibility over time. Around it sits the working-capital work on collections, payment terms, and inventory conversion that changes the shape of the curve rather than just describing it.
This is advisory work on a company’s own operating cash. The firm does not hold, custody, or direct client funds, does not have authority over accounts, and does not manage investments or provide investment advice.
Scope of work
Scoped in writing before the engagement begins.
01
Thirteen-week cash flow
A receipts-and-disbursements model built from source detail, maintained weekly, with actual-to-forecast reconciliation each cycle.
02
Working-capital optimization
Analysis of collections, payment terms, and inventory conversion, with a prioritized list of the changes that actually shorten the cash cycle.
03
Covenant monitoring
Calculation of financial covenants on the credit agreement’s own definitions, tracked forward against the forecast so a tight quarter is visible before it arrives.
04
Borrowing base and availability
Support for borrowing base certificates and availability tracking, with the eligibility mechanics documented rather than assumed.
05
Lender communication support
Preparation of the reporting and the supporting analysis a lender expects, and help presenting it, particularly when the news requires context.
06
Scenario and downside planning
Liquidity runway under stated downside cases, with the specific triggers and lead times that would require action identified in advance.
Typical Situations
When to engage
Visibility ends at the bank balance
Cash decisions are being made week to week without a forward view, and nobody can say with confidence what the position looks like in a month.
A covenant is getting tight
The credit agreement has a test coming and the company needs to know where it lands, and to be the party that raises it with the lender first.
Growth is consuming cash
The business is expanding and the working-capital requirement is growing faster than the earnings funding it.
If the cash view runs only as far as today, a rolling forecast is the fastest thing to fix.
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