Liquidity & Cash Management
Solutions
We work in concert with plant management to understand key operational constraints while analyzing opportunities to optimize working capital to release trapped cash, enhance borrowing base, and improve overall working capital efficiency.
Who We Serve
We assist companies with financial challenges that are struggling with cash availability — whether due to unprofitable operations, challenges meeting lender obligations, or other short-term liquidity issues. We also assist OEMs and Tier-1 customers who need greater cash flow visibility to make informed decisions when managing a challenged supply chain.
Common
Warning Signs We Help Address
If your organization finds itself implementing short-term liquidity fixes without addressing core business issues, the sustainability of your current liquidity and cash management practices may be at risk. We help identify and mitigate emerging issues including:
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Vendors being stretched beyond payment due dates, sometimes by days or weeks
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Payroll tax payments and possibly 401(k) employee deductions being used as an informal borrowing mechanism
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Informal or negotiated payment arrangements designed to manage week to week liquidity
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Overly optimistic or inaccurate cash flow assumptions leading to a lack of transparency into financial performance, including:
Revenue and collection timing mismatches
Shipping and receipt date discrepancies
Cash collection assumptions that do not reflect actual business cycles
Our Services
Our active cash flow management services include conducting critical payment analysis, managing relationships with key customers and vendors, and developing detailed short-term cash flow forecasts, tested against actual cash management practices.
Critical Payment Analysis
We help organizations unlock liquidity by addressing the inefficiencies quietly draining cash, starting with an assessment of current cash flow processes and challenging underlying assumptions. By addressing these inefficiencies, organizations can identify, prioritize, and sequence business-critical payments from those that can be strategically timed, bringing structure and discipline to vendor management.
Managing Relationships
We work with and coach internal teams on cash management best practices so they can establish disciplined reporting rhythms and proactively engage key stakeholders going forward.
The 13-Week Cash Flow Forecast
To assess an organization’s cash flow situation, we implement a 13-week cash flow forecast – a tool that is generally required by lenders. This planning horizon is long enough to surface seasonal and cyclical trends, as well as one-time aberrations that may arise, yet short enough to maintain accuracy and weekly accountability. It provides greater visibility and decision-making runway than monthly forecasts or limited four-week rolling views, which often lack sufficient lead time to assess the situation and plan strategic next steps in distressed environments.
Our Approach
At RPM, we offer a hands-on, embedded solution and work directly with the teams closest to the problem to diagnose root causes. We then coach those teams through actionable solutions and next steps in real time.
Through our experience serving challenged companies and their customer partners, we bring a well-rounded perspective to cash management as well as designing and executing credible stakeholder-ready solutions. We work alongside your team, focusing on critical, immediate cash needs, and then lead the implementation of structural changes that create lasting improvements.
Your Toolkit Going Forward
Together, we create a plan for your organization to move forward. You walk away with a structured cash flow model ready for stakeholder reporting, a prioritized vendor management framework, and a defined internal cadence and approval process for ongoing cash management decisions.
Liquidity Management Leads to Restructuring
Liquidity management is often the first step to a broader restructuring plan. While some firms may benefit from short-term cash remediation, liquidity constraints often signal the need for a more comprehensive, longer-term solution. This near-term cash work is critical to establishing a liquidity runway that enables informed strategic decisions, stakeholder engagement, and evaluation of legal and operational alternatives.
Ready to Get Started?
At RPM, we help companies find a way forward, and liquidity management is what makes that possible. If you need help assessing and preserving cash flow, contact us today to find out how we can assist.
