Liquidity shortages are among the most common reasons healthy Swiss SMEs run into financial trouble. The issue is rarely a lack of profitability – it is timing: invoices must be paid before customer payments arrive. Anyone who does not actively manage that lag quickly loses sight of their ability to pay – with consequences that can threaten the business.
Why liquidity and profitability are not the same
A company can look profitable on paper and still struggle to pay its bills. The reason is the gap between outflows and inflows: wages, rent and supplier invoices are often due immediately, while customers pay only after 30, 60 or even 90 days. Add investments, seasonal swings or a large order that requires heavy pre-financing, and the gap quickly becomes a real shortage.
These industries are hit especially often
Not every business is equally exposed to liquidity swings. Particularly at risk are:
- Construction and related trades: Long project timelines, high pre-financing of materials and labour, and delayed final payments regularly create shortages – often when several projects run in parallel.
- Retail and hospitality: Seasonal demand, high inventory costs and the need to pre-finance before peak periods such as Christmas or the summer season put cyclical pressure on liquidity.
- Manufacturing: Long production and delivery cycles tie up capital in raw materials and work in progress before an invoice can even be issued.
- Tourism and agriculture: Strongly seasonal revenue sits against year-round fixed costs – a classic recipe for recurring shortages.
- Project-based service and consulting firms: Long payment terms from large clients and advance outlays for staff and materials before invoicing often create short-term capital needs.
What these industries share: cash flow does not follow the rhythm of the business – it lags behind it.
How to spot liquidity shortages early
Watching only the bank balance usually means reacting too late. A rolling liquidity plan over 12 to 13 weeks that matches expected inflows and outflows week by week is more useful. It also helps to track a few early-warning metrics:
- Trend in days sales outstanding (DSO): Are customers paying later and later?
- Ratio of short-term liabilities to liquid assets
- Utilisation of existing credit lines
- Seasonal patterns from prior years that may repeat
Ideally these metrics show a shortage weeks ahead – enough time to act before payroll is due.
How companies can take action
Alongside internal measures such as tighter receivables management, adjusted payment terms or inventory optimisation, targeted external financing is often the most effective way to bridge liquidity peaks without slowing growth.
That is exactly where Kamuno comes in. Kamuno offers Swiss SMEs a digital SME loan with a flexible credit line: instead of a fixed one-off amount, businesses receive an approved line from which they can draw – based on clear rules – exactly what they need at the time. Costs apply only to the amount actually used, not the full line, which maximises financial flexibility. Unlike classic bank loans, Kamuno’s processes are leaner and faster – critical when capital is needed at short notice.
In practice, a suitable Kamuno financing solution can help:
- Bridge seasonal peaks, for example in retail before Christmas or in tourism before the high season
- Secure project pre-financing in construction without waiting for the final payment
- Free up working capital so supplier invoices can be paid independently of when your own customers pay
- Seize growth opportunities without a large order putting your ability to pay at risk
Liquidity shortages are not a sign of entrepreneurial failure – in many industries they are a structural challenge. Anyone who plans liquidity systematically, takes early-warning signals seriously and, when needed, uses flexible financing such as Kamuno’s gains the financial room to focus on the core business again – instead of planning from one payment deadline to the next.