Liquidity in Uncertain Times: A Strategic Imperative for Entrepreneurs
In periods of economic uncertainty, liquidity is not just a financial metric—it’s a strategic asset. Businesses with sufficient liquidity not only withstand volatility but often emerge stronger. Those without it face significantly greater risk. The current turbulence surrounding global tariffs is one such moment of uncertainty, and it demands thoughtful, proactive financial planning.
Across boardrooms and executive meetings, one topic dominates: tariffs.
Leaders are asking the right questions:
- What’s happening now?
- What lies ahead?
- Are these policies here to stay?
- And most importantly: What actions should we take?
Often, management’s initial reaction involves scaling back—freezing travel, pausing hiring, or deferring investments in innovation and technology. While cost discipline is always wise, particularly during volatile times, a more critical and frequently overlooked focus should be liquidity management.
Entrepreneurs should be asking:
- What is our current cash position?
- What additional credit lines or facilities can we access?
- Will our borrowing base or financial covenants limit our flexibility?
- What is our projected cash burn, and how long can we sustain operations under various scenarios?
- What alternative sources of liquidity are available to us?
At Glengarry Capital Group, we work with forward-thinking business leaders to assess and enhance liquidity positions. We provide access to a wide range of capital solutions to ensure our clients have the financial agility to weather uncertainty and seize emerging opportunities.
Periods of disruption separate market leaders from those left behind. In times like these, many companies retreat—customer relationships weaken, top talent is overlooked, and innovation is deferred. Conversely, well-capitalized businesses have a rare opportunity: to deepen relationships, attract high-performing talent, and gain a first-mover advantage on strategic initiatives and technologies.
If you’re considering how to strengthen your company’s financial foundation, I welcome the opportunity to speak with you. Together, we can craft and implement a capital strategy that enables both resilience and growth.
Contact Tom Kessel at [email protected] to schedule a confidential consultation.