There is a lot to read about cash flow management and its importance in a company’s ability to meet its payment obligations and make the best use of its financial resources. Effective cash management is particularly important for German medium-sized companies, i.e. small and medium-sized enterprises (SMEs), in order to remain competitive and promote growth. In this article, we present some trends in liquidity management in German SMEs that have emerged in recent years and show how Puls is committed to them, especially in point a) digitization.
a) Digitization: Digitization, which is on everyone’s lips, also offers new opportunities for liquidity management to increase the transparency, efficiency and flexibility of financial processes. By using digital platforms, tools and solutions, SMEs can plan, manage and monitor their liquidity better and react more quickly to changes in the market. For example, SMEs can track, automate and optimize their payment flows in real time via online banking or cloud-based software, or tap into alternative sources of financing via digital marketplaces or FinTech providers.
b) Sustainability: Sustainability is seen as another trend affecting liquidity management in German SMEs, to the benefit of all. Fortunately, more and more SMEs are recognizing the importance of environmental, social and governance (ESG) issues for their business and reputation. By integrating sustainability criteria into their financial decisions, SMEs can not only assume their social responsibility, but also improve their liquidity.
c) Diversification: Diversification is another, perhaps less well-known, trend that Liquidity management in German medium-sized companies characterizes and characterizes. With increasing volatility and uncertainty in global markets, many SMEs need to find new ways to increase profits and reduce risk. By diversifying their business models, products, customers or markets, SMEs can reduce their dependency on individual factors and stabilize their liquidity.
Software-as-a-Service in the financial services sector
SaaS/Fintech are companies that offer Software-as-a-Service (SaaS) with the aim of enabling financial services and/or specifically strengthening and improving existing ones. SaaS is a licensing and distribution model in which software applications are provided in the form of an Internet service. Users typically pay a monthly or annual fee to access the software without installing or maintaining it on their own devices.
Fintech is a well-known collective term for technologies and services in the financial and economic sector. No doubt you know fintech companies that offer innovative solutions to customers and business partners via internet and mobile devices.
SaaS/Fintech combines the advantages of SaaS and Fintech to offer flexible, scalable and economical financial solutions. They can focus on a specific line of business or cover a wide range of financial services.
The idea and vision
And it is precisely in this area that Pulse is establishing itself for your company with business software in the form of SaaS. The application will give SMEs the ability to manage their assets and finances. Your financial data is managed through the app. A special advantage for you is the lack of connection to the banking system. In this regard, the application forms an interface to the banking system.
Small companies in particular are considered difficult to inspire and convince to use new and therefore unfamiliar software. However, the argument weighs heavily that the data provided by the app significantly facilitates access to debt capital and financing and makes it easier to win small companies over to the business software app.
Another convenience for you is the ease of use of the application. After registering the user, all bank details for all bank accounts are entered. This is followed by an AI-supported analysis of your data for liquidity. The app only works with the data you provide and independently evaluates the future of your company.
Future data collection can be done by an automated system. This will further increase the company’s credibility. Even corporate groups can be treated as the data is the facts and there is no advice. Data, facts are the only thing that counts.
With the application, your company will get quick access to your financial situation and will help you to predict the company’s paths and the company’s goals.
goals and visions
Puls, also a start-up, can therefore react very flexibly to the market situation and the customer. The company sees its task in using banking services as a service and building up transaction services. The many positive customer reviews for the existing transaction services show that the company is on the right track.
The company’s long-term vision is to become a one-stop shop for financial customers without being the sole partner. On the contrary, it wants to work with other application providers.
Since the app does not work directly with the banks, but acts as an interface between companies and banks, it will be much easier for start-ups to get an overview of their own liquidity and finances.