Accessing liquidity

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. There are many considerations in evaluating your liquidity position and planning for recovery. 

Related topics COVID-19

Key considerations

  • What is the current liquidity runway?
  • What internal levers can be pulled?
  • What external levers are available?

Key actions

Now

  • Establish a cash management office to centralize all liquidity actions
  • Commence immediate priority recovery actions
  • Conduct scenario modeling and contingency planning
  • Tap existing credit facilities

Next

  • Enhance products/services and channels/customer profiles
  • Stress 13-week cash flow model and longer-term forecasts
  • Test covenant compliance
  • Engage in negotiations with creditors
  • Stress test scenarios

Beyond

  • Realign costs/capex
  • Dispose of non-core businesses
  • Pursue insurance proceeds
  • Renegotiate/refinance debt agreements or obtain other relief
  • Introduce business process redesign and realignment

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