Cash flow strategies for Swiss SMEs

Cash flow is the lifeblood of every company. Especially in uncertain times, proactive cash flow management is crucial for success.

Why cash flow management matters

A company can be profitable and still illiquid. Without sufficient liquidity, invoices, salaries and taxes cannot be paid on time – with potentially fatal consequences.

Optimise receivables management

Payment terms that are too long tie up capital unnecessarily. These strategies help:

• Shorter payment terms: 14 instead of 30 days where possible.
• Use cash discounts: 2% discount for payment within 10 days.
• Dunning automation: Systematic reminder runs prevent forgotten receivables.

Use supplier credit

Negotiate longer payment terms with suppliers. This creates an interest-free loan and improves your cash flow without involving a bank.

Plan for seasonality

Many Swiss SMEs have seasonal fluctuations. A detailed cash flow forecast helps to spot bottlenecks early and take measures before it becomes critical.

Build liquidity reserves

Aim to hold at least three months of fixed costs as a reserve. This gives you room for investments and protects against unforeseen events.

Keep an eye on financial key figures

The most important cash flow key figures:

• Operating cash flow ratio: Should be > 1.0.
• Current ratio: Short-term assets / short-term liabilities, ideally > 1.5.
• Days sales outstanding (DSO): The lower, the better.

Conclusion

Proactive cash flow management is crucial. With the Finius finance dashboard you have all relevant key figures in view in real time and can react early.