Glossary · Austria and Germany
Liquidity and cash planning
Liquidity is the ability to meet payment obligations as they fall due. Cash planning considers available funds and expected inflows and outflows. A receivable may have economic value without yet being money in the bank.
Distinguish the concepts
Revenue, profit and receipts answer different questions. A business may sell successfully yet lack cash for near-term expenses. Distinguish reliable inflows from uncertain ones. Assuming every overdue invoice will be paid next week hides risk rather than resolving it.
Jurisdiction and scope
This distinction applies to Austrian and German businesses. Legal insolvency questions require separate, timely assessment. Collection can support handling of receivables but does not guarantee a receipt date. Interest and costs should not automatically be forecast as free cash where the agreement allocates them differently.
Illustrative business example
An agency records strong monthly sales while several customers pay late. Its weekly forecast separates bank funds, confirmed payment dates and uncertain claims, alongside payroll, rent and tax dates. Submitting an invoice changes the handling route; only an actually available receipt directly increases cash.
Common questions
Does a large receivables balance mean good liquidity?
Not necessarily. Consider amount, expected timing and uncertainty of actual receipts together.
What belongs in a cash forecast?
Available funds, dated inflows and outflows, and explicit assumptions. Do not mix scenarios with confirmed bank balances.
Does collection immediately solve every shortage?
An instruction does not create a guaranteed advance. Assess possible receipts against procedure, ability to pay and settlement terms.
Related topics
Sources and basis
Content reviewed on 23 September 2026. Procedural information and our contractual terms are separate foundations. The individual case remains decisive.
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