Danger of insolvency demands swift action

As soon as an economic crisis becomes existentially threatening, immediate measures are required. As a rule, advanced payment difficulties already exist at this point, which have already been perceived by suppliers. In such a situation, you have short-term options through stricter accounts receivable management, by asking selected customers to pay invoices earlier, through pragmatic sale and lease back, by asset-based loans or by interim financing from your commercial bank until a restructuring loan is granted.

If there is a risk of insolvency, you must in parallel stop any purchase commitments. For example, you must no longer initiate any raw material orders, sign any consulting agreements, or commission any services. Otherwise, you may not only be held personally liable for damages incurred by your suppliers, but you will also make yourself personally liable to prosecution. Instruct all employees to stop placing orders and commissioning services; otherwise you may be accused of not having exercised your authority to issue instructions. Even then, you will be personally liable in most of the countries.

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