At first glance, *When Money Never Sleeps* sounds like a topic for major banks or financial startups. For many Swiss SMEs, this seems abstract: They work with daily balances, check payments in the morning, and rely on their main bank’s line of credit.
That’s a costly mistake. Liquidity doesn’t follow office hours. A payment made at the wrong time, an unexpected debit, or a delay in payment approval can create a shortfall within a few hours—one that can only be resolved the next morning with significant effort and additional costs.
In this article, I outline why intraday liquidity is important, what practical measures SMEs in Switzerland can implement immediately, and how responsibilities should be structured so that “When Money Never Sleeps” becomes a strength rather than a weakness.
Why Intraday Liquidity Is Important for SMEs, Too
Liquidity is a state of affairs, not a plan. End-of-day balances show what the situation was like yesterday; they say nothing about how much money is still available this morning if several suppliers bill at the same time or if a customer’s payment is late.
The consequences of an unclear intraday outlook are specific:
- Unexpected overdraft on the checking account, resulting in additional charges.
- Missed opportunities to receive discounts or failed deliveries due to rejected payments.
- Delays in decision-making because responsibilities for short-term liquidity have not been defined.
A hypothetical example: A Swiss SME with about 80 employees makes a payment in the late afternoon that is debited simultaneously with several direct debits. Without intraday visibility, the debit went unnoticed; the bank debits the account, a funding shortfall arises, and the company needs short-term replacement financing. The direct costs are only part of the problem; the time spent by management and the uncertainty disrupt day-to-day operations.
Specific Steps: How to Reduce Liquidity Risks in Just a Few Steps
Tools are often less important than processes and discipline. The following measures can be implemented quickly and provide immediate benefits:
- Daily intraday checks: At least two scheduled spot checks in the morning and late afternoon, supplemented by an alert rule for critical thresholds.
- Payment sequencing: Prioritize payments so that critical direct debits are processed and scheduled first.
- Buffer accounts or reserve lines: Keep a defined reserve in a separate account that is used only to cover short-term shortfalls.
- Clarify Responsibilities: Define who is authorized to make short-term limit decisions and approve payments.
- Automated Debit/Credit Matching Processes: Reduce manual effort in accounts receivable and identify discrepancies earlier.
Many of these measures can be implemented even without expensive systems: a simple, shared Excel or BI view with real-time account information, clear approval levels, and a defined escalation process are often enough to defuse situations before they become critical.
Operational Implementation: Tools, Bank Connections, and Processes
Technically speaking, there are various ways to obtain intraday information today: bank feeds via ISO 20022, online banking APIs, or manually retrieving balances. The key is to have a reliable source and a clear process for interpreting the data.
Practical steps for implementation:
- List of Common Errors: Where Do Surprises Often Arise? Direct debits, wire transfers, credit card statements?
- Bank Integration: Take advantage of your Swiss bank's capabilities to retrieve balances and transaction details intraday.
- Approval Protocol: Who is authorized to stop or postpone payments on short notice? Define escalation levels.
- Test Scenarios: Simulate an unexpected cash outflow and see how quickly you can respond.
If internal resources are lacking, working with external experts is an option. A temporary or part-time CFO can help design processes and provide support during the first few weeks. You can find more information on this in my Fractional CFO Switzerland offering and in the CFO as a Service offering.
Responsibilities and Governance in Day-to-Day Operations
Often, even the best technical solution fails because decision-making authority is unclear. Clearly defined responsibilities shorten response times and reduce inefficiencies.
Basic Rules for Governance:
- One person is primarily responsible for intraday monitoring (Finance Lead).
- Designated substitutes for absences.
- Thresholds above which a predefined escalation procedure is immediately triggered (e.g., reserve consumption, liquidity shortfall exceeding X).
- Monthly review meeting of the Board of Directors or Executive Management to discuss liquidity strategies and limits.
Such rules can be incorporated into the company's financial policy. They also give banks and lenders confidence in your ability to manage short-term risks.
Conclusion and Recommendations for Action
Liquidity never sleeps. For Swiss SMEs, this isn't just an abstract financial concept—it's part of their daily routine: intraday transparency, clear payment sequences, and well-defined responsibilities help prevent surprises and reduce costs.
My recommendation: Start with a simple intraday checklist and a clear approval protocol. Test the process for a week, measure response times, and make adjustments as needed. If you don’t have the internal capacity, a part-time CFO can set up processes and train employees on short notice.
If you are looking for assistance with implementation, I would be happy to discuss practical solutions and management structures. Please contact TF Financial Services at https://tf-fs.com/contact/ for a no-obligation consultation.
— Tilo Frenzel, CFO, Advisor, and Member of the Board of Directors