Skip to main contentHow selling receivables helps your liquidity management - EOS in Germany
The sale of receivables as part of liquidity management.
A well-functioning liquidity management system is essential to keep your company on track. If your balance sheets are well balanced, you will remain solvent and can plan your future with certainty. An efficient method for securing your liquidity in the medium and long term is the sale of receivables.
Get your finances under control with liquidity management.
Liquidity management is about keeping an eye on pending incoming and outgoing payments, uncovering savings potential, and making sure that you have sufficient liquid funds to allow your business to constantly run smoothly.
Liquidity management means identifying liquidity shortfalls at an early stage.
To ensure a healthy ratio between cash flows, assets and the necessary financing, it is worthwhile taking a regular look at your balance sheets. Particular attention should be paid to the following liquidity ratios with a view to securing liquidity in the medium to long term:
Contribution margin 1
Contribution margin 1 compares the ratio of equity to assets. An equity-to-assets ratio of 50 percent is considered healthy.
Contribution margin 2
Contribution margin 2 compares the equity plus long-term borrowed capital to assets. The former should, if possible, fully cover or exceed the assets.
First degree liquidity
Also known as cash liquidity or cash ratio, first degree liquidity is the ratio of liquid funds to short-term liabilities. A coverage of around 20 percent is an approximate reference value.
Second degree liquidity
Second degree liquidity, also known as collection liquidity or quick ratio, considers the liquid funds together with the short-term receivables and securities portfolio and compares them with the short-term liabilities. Ideally all short-term liabilities are covered 100 percent.
Third degree liquidity
Third degree liquidity, also called the working capital ratio or current ratio, measures the working capital against the short-term liabilities. To prevent a liquidity shortfall, the working capital needs to be around twice as high as the company’s short-term liabilities.
Receivables management as important tool.
If your company’s figures deviate significantly from the above-mentioned reference values, this is a clear alarm signal that you need to make changes to your liquidity management. There are plenty of measures you can take. If you look at various guidelines on this topic, engaging a professional receivables management provider will often be the first piece of advice.
So that you do not have to wait too long on your customers’ payments or even sit on outstanding invoices, stringent processes from invoicing to dunning procedures are absolutely imperative. In this context, EOS subsidiary FinTecrity offers software solutions especially for SMEs, which will largely digitize and automate your invoicing and receivables management.
Low levels of outstanding receivables thanks to sale of receivables.
If reminders are no longer helping, there are two options: Either your company decides to work with a strong partner in fiduciary collection that recovers the receivables on the company’s behalf. Or you assign the outstanding receivables in full by selling them with all rights and obligations to a reputable buyer at a fair price. This allows you not just to overcome a short-term cash flow problem but also to turn debts into cash both immediately and in the medium term, which provides your company with greater planning certainty.
Would you like to free up liquidity and sell overdue receivables?
EOS is a byword for longstanding experience and fair purchase prices. Simply make an appointment with us for a consultation and our experts will handle everything else.
Forward flow sales for long-term and plannable liquidity.
Does your company regularly suffer from payment defaults? Forward flow deals help you to keep your receivables at a consistently low level and ensure your long-term liquidity.
Inadequate receivables management often the cause of liquidity shortfalls.
As well as insufficient financial controlling, the cause of liquidity shortfalls is all too often found in a company’s receivables management and/or the payment practices of its own customers. Too many outstanding receivables can quickly become a problem.
But what are the reasons for the payment defaults? And what can companies do to counter them? EOS conducted a survey on this issue among 3,400 companies in 17 European countries.
We use cookies on our website to enable you to have the best possible website visit. These include cookies that are necessary for the operation of the website. In addition, you can decide for yourself whether you want to allow the use of cookies and other tools for statistical purposes, comfort settings or marketing purposes.
In addition, you can withdraw any consent you may have given at any time. Further information can be found in our Privacy Policy and Imprint.
Necessary
Necessary cookies are required for the operation and basic functions of the website.
You can read about which cookies we use here.
Tool name
Cookieconsent_status
Tool provider
EOS Holding GmbH
Address of tool provider
Steindamm 71, 20099 Hamburg, Germany
Tool description
Essential cookie to save consent banner inputs.
Data processed
None
Purpose of data processing
To save consent
Retention period
60 days
Tool name
Java Session Cookie
Tool provider
EOS Holding GmbH
Address of tool provider
Steindamm 71, 20099 Hamburg
Tool description
Randomly generated session number essential for the proper functioning of the application software.
Data processed
None
Purpose of data processing
Proper functioning of website
Retention period
Session cookie – is deleted after you have closed your browser.
Comfort
If you allow comfort cookies, we can make use of our site easier for you. If you visit our website again to use our services, it is automatically recognized that you have already been with us and which entries or settings you have made, so that you do not have to enter them again.
You can read about which cookies we use here.
Tool name
Visitor
Tool provider
EOS Holding GmbH
Address of tool provider
Steindamm 71, 20099 Hamburg, Germany
Tool description
We use this cookie to make it easier for you to use this website.
Data processed
None
Purpose of data processing
Optimization, improvement of service
Retention period
Session cookie – is deleted after you have closed your browser.
Tool name
NEW_Visitor
Tool provider
EOS Holding GmbH
Address of tool provider
Steindamm 71, 20099 Hamburg, Germany
Tool description
We use this cookie to make it easier for you to use this website.
Data processed
None
Purpose of data processing
Optimization, improvement of service
Retention period
1 day
Statistics
We use statistical cookies to improve our offer. For a needs-based design and continuous optimization of our website, we collect data for anonymous analysis, for example, to determine visitor numbers and aggregated user behavior. These cookies do not serve to identify you personally.
You can read about which cookies we use here.
Tool name
nmstat
Tool provider
Siteimprove GmbH
Address of tool provider
Rosenheimer Str. 143 C, 81671 Munich, Germany
Tool description
This cookie contains an ID character string for the current session. It contains non-personally identifiable information about which sub-pages the visitor enters – this information is used to optimize the user experience.
Data processed
None
Purpose of data processing
Analysis, statistics
Retention period
399 days
Tool name
AWSELB
Tool provider
Siteimprove GmbH
Address of tool provider
Rosenheimer Str. 143 C, 81671 Munich, Germany
Tool description
This cookie ensures that all statistics from the same session are captured contiguously.
Data processed
None
Purpose of data processing
Analysis, statistics
Retention period
Session end
Tool name
siteimproveses
Tool provider
Siteimprove GmbH
Address of tool provider
Rosenheimer Str. 143 C, 81671 Munich, Germany
Tool description
This cookie is used to track the sequence of pages viewed by the visitor during the website visit.
Data processed
None
Purpose of data processing
Analysis, website statistics
Retention period
Session cookie – is deleted after you have closed your browser.
Marketing
We use marketing cookies and analytics tools to personalize the website and for advertising.
As part of SalesViewer®, a javascript-based tracking code is used to determine the following company-related information: - Name, origin and industry of the visiting company - Source/referrer of the visiting company - Keyword - Visitor behavior (e.g. subpages visited, time of visit, duration of visit).
You can read more information here.
Tool name
Facebook Pixel
Tool provider
Meta Platforms Ireland Limited
Address of tool provider
4 Grand Canal Square, Grand Canal Harbour, Dublin, D02, Ireland.
Tool description
Used by Meta to serve ads, measure and improve ad relevance, and offer advertising products on Meta.
Data processed
Ads Viewed | Pages Visited | Browser Information | Facebook Cookie Information | Facebook User ID | Geographic Location | Device Information | HTTP Header | Interactions with Ads, Services and Products | IP Address | Marketing Information | Usage Data & Behavior | Pixel ID | Referrer URL | User Agent
Purpose of data processing
Analysis | Conversion Tracking | Marketing | Social Media | Advertising
Retention period
__fbp (duration: 3 months)
Tool name
LinkedIn
Tool provider
LinkedIn Ireland Unlimited Company
Address of tool provider
LinkedIn Ireland Unlimited Company Wilton Place, Dublin 2, Ireland
Tool description
This cookie is used to obtain anonymized reports about the website target audience and the possibility of targeted advertising, e.g., in the context of retargeting.
Data processed
Device information, browser information, IP address, referrer URL and time stamp.
