BUSINESS CONSULTING
Cash flow under pressure: 8 moves before you reach overdue
· 6 min read · Georgios F. Dionysiou
Most businesses don't close because they're unprofitable. They close because they run out of cash at the wrong moment. The difference between profit and liquidity is the most underrated issue in SMEs.
First the picture, then the decisions
Without a weekly 13-week cash flow forecast, every decision is guesswork. The tool is simple: expected receipts, committed payments, cash balance per week. Once you see it, you know which week 'breaks' and have time to react.
The 8 moves
- Categorize clients by delinquency and implement a systematic collection process — not opportunistic phone calls.
- Renegotiate credit policy: advance payments, installment invoicing, discounts for immediate payment.
- Align supplier payment days with client collection days.
- Inventory check: capital sitting on the shelf is capital missing from the till.
- Profitability analysis per product/service and client — often 20% of clients generate losses.
- Audit bank charges and loan terms; errors in interest calculation or expensive working capital can be corrected.
- Settle tax and social security debts before they become overdue with surcharges and enforcement measures.
- Timely communication with banks and suppliers: a proposal that comes before the delay is treated very differently.
When the issue is no longer about cash flow
When debts are already overdue to banks, tax authorities or social security funds, the issue shifts from liquidity management to debt management. Tools examined include the out-of-court mechanism of Law 4738/2020, bilateral negotiation, or mediation — always based on documented financial data and a realistic viability forecast.
The key is timing: the earlier the mapping is done, the more options remain open.
Disclaimer — this article is for informational purposes only and does not constitute, nor can it replace, personalized legal, financial or tax advice. The legislation, ministerial decisions, amounts and criteria mentioned may have been amended or repealed after the date of publication; all information must be verified against current provisions (Official Gazette, gov.gr) at the time you make a decision. The outcome of each case depends on its specific factual and legal circumstances, the fund or authority involved, and the applicable provisions at the time. Before deciding or acting on any point in this text, seek a personal assessment from a qualified professional who will examine your own case.