Our Data-Driven approach to effective Cash & Liquidity Management in small and mid-sized enterprises
„Data is the new oil “– Clive Humby, 2006.
This quote is nowadays considered as a fact, however not everyone acts accordingly. Building on our vast experiences in the Private Equity (PE) Field, we see the needs and benefits from enabling transparency for our customers.
This is underlined by looking at the growth rates for cash & liquidity management software. For small and medium-sized enterprises (SMEs), from 2015 to 2018, their usage grew from 36% to 55% which translates into a growth rate of 53% or 16% year-over-year. Nowadays SMEs need to keep a close grasp on their payables and receivables, otherwise they leave money on the table.
Visualizing Cash-Flows (CF‘s) enables our customer to take a deep dive into their company’s financial structure. By aggregating CF’s the company can find potential bottlenecks and reduce the cost of refinancing. Additionally, the most important customers can be singled out and their profit/revenue impact analyzed. Finding trapped cash and increase the overall liquidity can be another benefit. By using the automated report feature, the freed-up resources can create additional value for the company.
With the use of a custom solution, an individual scenario-functionality can be leveraged an in integrated part of the cash and liquidity management. Taking advantage of these functionalities is essential in bracing the company against upcoming events. Especially, SMEs need to stay flexible and therefore benefit the most from such features. While most of these functions are offered by various software providers, most lack the flexibility and the face-to-face advisory to maximize the potential of such solutions.
Base Camp Management Consulting understands the need of our SME customers and develops holistic, custom tailored solutions to get the maximum benefit for our customers. This is done by taking a firm look at the underlying data structure and data sources, unifying it, building a framework for visualizing and analyzing said data, implementing it and do a roll-out for every person of interest. Due to our extensive knowledge of SMEs we can give a thorough start to finish consultation.