BGN Entrepreneur

With liquidity getting tight, the question for companies is not only how to obtain finance but also how to avoid requiring it.
Cash management is becoming increasingly important and directors are considering how to cut cost and defer payments. Companies of all sizes have frozen their dividends even when profits are apparently rising. Many more have reduced or suspended entirely their payments to shareholders. Variable cost can also be cut by laying-off staff to reflect falling orders, but overheads must still be paid and low inflation and low demand make it hard to increase revenues. Companies can press for prompter payment but are likely to be similarly squeezed by their own suppliers.

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