Liquidity planning

How much capital will you need in the months and years ahead? What types of financing are available to cover this amount? A financial and liquidity plan will provide you with an overview of the funds required, as well as how to best manage your company's available liquidity.

Why do I need a liquidity plan?

What is liquidity planning?

Liquidity planning is used to compare the company's expected income and expenses as of an exact date. It is therefore is a type of early warning system for any potential liquidity bottlenecks and ensures that the company remains solvent for the foreseeable future. It also shows how much available liquidity can be generated in the short term, medium term, and long term.


This is essential during the startup phase, because expenses for wages and materials will be incurred from the very first month. However, it may be several months before payments start to come in. 

What do I have to bear in mind in terms of liquidity planning?

What is a financial plan?

Alongside liquidity planning, financial planning includes additional instruments such as a balance sheet forecast, an income statement forecast, and a cash flow statement forecast. It looks at the company's entire assets and provides a general summary of the next two to five years. This allows you to identify problems at an early stage and take action.

Download the Excel template as an effective planning tool for your company and keep track of your liquidity situation.