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Liquidity & Working Capital Management

Liquidity management is critical in distressed situations.   Cash is the lifeblood of any company and the cashflow cycle should be thoroughly understood and monitored with a careful eye.  Company owners and managers need details on cash flow, including anticipated receipts and timing of debt service payments, trade payables, rent, insurance, and payroll and related costs.  We start with a detailed, bottom-up review of the client’s cashflow model and recommend enhancements to improve its accuracy and efficiency.  We are often engaged to build a new model from scratch with a detailed focus on critical revenue and expense categories. A liquidity and working capital review should be first-up in any engagement and will often be key to successfully engaging with lenders regarding a work-out, including forbearance and over-advances.   


A key aspect of a liquidity assessment is a thorough review of the client’s accounts receivables to reconcile revenue to collections and to assess collectability and expected timing of receipt.  Our professionals are skilled at working with our client’s customers and creditors to accelerate receivables while deferring disbursements.  


Once the assessment is complete, we provide actionable recommendations to stabilize and enhance liquidity and can provide a detailed cash flow model for on-going liquidity management and to provide visibility of near-term cash flow which, in turn, will allow management to be “proactively reactive” to changing circumstances.   Corner Point cash flow models includes a dashboard of key metrics, weekly updates, and variance reporting and can be implemented and maintained either by our professionals or company staff. 


All in all, Corner Point’s liquidity and working capital management services provide 20-20 visibility into a client’s cash flow and assists in the implementation of sound liquidity and cash management disciplines. 

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