Liquidity Analysis
Debt Restructuring

The Essentials of Liquidity in Accounting and Investing

Liquidity is a measure of the extent to which a person or organization has cash to meet immediate and shortterm obligations, or assets that can be quickly converted to generate cash. In accounting terms, it is the ability of current assets to meet current liabilities. And in investing terms it is the ability to quickly convert an investment portfolio to cash with little or no loss in value.

Ensuring Financial Stability and Cash Flow

Liquidity risk is the risk that a company or bank may be unable to meet short term financial demands and business obligations. This usually occurs due to the inability to convert a security, hard assets to cash or timely collect its Account Receivables.

Almost all the companies in the UAE are facing difficulties in finding source of finance for their businesses due to several factors:

Difficulties in collecting account receivables.
Banks are either reluctant to extend financing facilities or reduced the existing facilities by at least 50% due to poor profitability and poor liquidity.
Poor growth in sales/revenue.
Inability to manage cost and operating expenses
Inadequate cash resources to invest in order to improve growth

How MIM Consultancy can help?

Analyze and assess company financial to identify the financial requirements.
To enhance the company financial potential so that it can pay its obligations on time.
To find a source for company so that it can inject more capital.
Negotiation with Banks to either ease the existing terms or get a new financial assistance.
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