The financial impacts caused by economic volatility, supply chain disruptions and labor shortages, to name a few, can reveal the degree to which even well-capitalized companies are vulnerable to unanticipated shocks. The good news, however, is that weathering these challenges is well within the reach of many companies. The real challenge and opportunity is having enough liquidity at the ready to be able to respond as conditions change.
The key to safeguarding your liquidity is leveraging the right resources and digital tools, and to identify and mitigate the risks threatening your working capital position. This might entail having your sales team partner with finance to assess the cash position of your top 20 customers, or having more frequent conversations with your financial institution about the latest cash management solutions.
As you plan to sure-up your working capital management practices, here are four critical strategies to consider.