What measures will improve the liquidity of the enterprise?

The liquidity of your enterprise is the degree of the possibility of early or simply accelerated repayment of its debts. Simply put, if the firm has taken a loan for its development for an N-th amount (and this amount, as a rule, is small), then its liquidity is the higher, the sooner it can, if necessary, pay this loan. This is a kind of indicator of the financial stability of the enterprise.

In general terms, this measure is measured by dividing the available funds at the company's disposal by the total amount of debts. If it is less than 0.2, this indicator is extremely low. High performance will help the company "survive" during a crisis or simply during financial instability. Low ones guarantee bankruptcy in almost any force majeure. Then the company will not last for several months.

Why is it so important to increase the liquidity of the enterprise? The question here is not only how long the organization can survive in unforeseen crisis conditions. The level of its liquidity is one of the indicators important for potential partners. A profitable partnership is important for any firm, but if it can be declared bankrupt in the future, people who can offer long-lasting and fruitful cooperation will in most cases pass by. The same applies to investors - very few people will be interested in an enterprise with low liquidity, unless some other indicators will inspire serious confidence. But many organizations can successfully exist only through investment.

Therefore, increasing the liquidity of an enterprise is extremely important for the owner. This can be done through comprehensive solutions aimed at improving the financial condition of the firm and reducing the arrears. The main measures by which to increase liquidity are as follows:
- the maximum possible reduction in the value of receivables;
- increase in profits;
- optimization of the company's capital structure;
- a decrease in the value of tangible assets.

A separate question is how to achieve this. To optimize production , a competent management scheme is necessary, and if its compilation is beyond the strength of the owner, which is very likely, it is reasonable to spend an N-th amount and hire one more employee-a talented specialist who will create a working and profitable scheme.

Other ways to increase the company's liquidity are financial stabilization and lowering of accounts receivable. This can be achieved by analyzing the assets for their more rational distribution, planning all the financial activities of the enterprise and, in addition to planning, also meeting the deadlines for these plans. As for financial stabilization, a very competent approach is needed here, aimed at reducing monthly expenses. It is undesirable to do this at the expense of the wages of employees. You can find many other items on which the organization has the opportunity to save money.

Increase of liquidity of the enterprise can also be ensured by refinancing accounts receivable and speeding up its turnover. Thus, you can increase the amount of financial assets. With the establishment of regulations governing the stock of the enterprise, optimization of material or commodity values is carried out. Carrying out technical and economic calculations will also help in optimization.

Increasing the volume of products sold, you can count on the rapid increase in liquidity of the enterprise. Actively applying available funds, the firm can achieve an increase in the level of profitability and the amount of profit. Expanding the boundaries of the sales market will also help in increasing the liquidity and solvency of the firm. Another important aspect is the increase in the labor productivity of the working personnel due to the more rigid framework, higher requirements and penalties for violation.

With experience and economic education, the owner can easily cope with the tasks set by himself. But the majority in such cases uses the services of economists and analysts. As a rule, it contributes to the prosperity of the firm.