Avoid a financing crisis

To avoid a financing crisis, actively monitor your company's

• profit and loss account and balance sheet
• realisation of the company budget
• liquidity and solvency
• profitability.

Make regular cash flow calculations.

Make sure that your company has funds for at least three months’ payments. This allows your company to manage unexpected expenses and seasonal fluctuations in revenue. 

To help your cash management, you can, for example, draw up a cash budget and make cash flow calculations.

You should watch out for any warning signs of a general financing crisis in your company and the entire sector. 

Potential warning signs include insufficient funds and decline in demand.

Try to react to any alarming changes and warning signs you have detected as quickly as possible. The earlier you take corrective measures, the better your company’s possibilities are to recover from the crisis or to avoid it altogether.

Remember that there is nothing to be ashamed of in asking for help. Advice on how to prevent a financing crisis may be found, for example, from

• Yrittäjän talousapu counselling service
• your regional business development company
• your accountant.