I often receive this question in a simple format:

"I have a liquidity problem, can you help me?"

And I am honest from the very first moment: I can help, but not by bringing in liquidity.

Because liquidity is rarely the root of the problem; it is usually the consequence of what preceded it.

What is thought to be a liquidity problem is, in reality:

  • Decisions made too late.
  • Expansion that was not tested before execution.
  • A business model that does not generate cash.
  • Revenues that are recorded but not collected.
  • Pricing that does not reflect risks.
  • Costs that do not shrink when needed.
  • Working capital consumed without planning and monitoring.
  • Inventory turning from an asset into a challenge.
  • Discounts granted out of fear.
  • Sales without profitability.
  • Growth that is faster than management’s capability.
  • An absence of priorities regarding what should be stopped.
  • Cash management without scenario planning.
  • Key Performance Indicators (KPIs) that do not measure cash flow.
  • Confusion between profit and liquidity.
  • Decisions driven by intuition, not data.
  • An operational culture that avoids real confrontations.
  • A management that simply waits for next month.
  • Weak governance of financial decision-making.
  • Unclear responsibilities.
  • A team that works a lot but produces little.
  • A focus on the image rather than the substance.
  • Investing in expansion before reaching stability.
  • Debt used as an escape route rather than for building.
  • Ignoring early warning signs.
  • Postponing difficult decisions.
  • Denying reality for longer than necessary.
  • Reactive, rather than proactive, management.
  • A company without a rhythm.
  • A company that operates… without a system.


Here, I Must Be Completely Candid — Managerially and Strategically:

  • Liquidity adds no value to a company that lacks decision logic.
  • Funding cannot fix a flawed strategy.
  • Injecting money into weak management only accelerates the collapse.
  • Cash cannot compensate for an absence of priorities.
  • Liquidity does not shorten decision-making time.
  • Money does not create operational discipline.
  • Financing does not solve the misallocation of resources.
  • Liquidity does not automatically convert growth into value.
  • Cash cannot save a fragile business model.
  • Money is never a substitute for governance.
  • Companies do not go bankrupt due to a lack of liquidity; they go bankrupt due to prolonged wrong decisions, or correct decisions that came too late.


You do not just need liquidity; you need management, leadership, and much of what was mentioned above.

Do not magnify your problems with debt.

Do not dig the hole you are in any deeper.

Liquidity cannot save a poorly managed company, but good management can save a company even if liquidity is absent…

When a company finds itself in urgent need of liquidity, it has usually failed managerially a long time ago.



Mohammed bin Saleh

Management and Finance Enthusiast