24-hour negotiation service against insolvency in medium-sized businesses
- KfW: Companies feel a heavy strain on liquidity
- Radical savings service in purchasing against insolvency
- Renegotiate supplier offers within 24 hours
- Five- to six-digit savings per year
According to the second representative KfW special survey published on Friday (19.06.2020), a large number of small and medium-sized enterprises face payment bottlenecks for annual sales of up to 500 million euros. A new radical savings service from the Kloepfel Group purchasing consultancy is therefore helping companies to achieve immediate savings when purchasing goods and services. The aim is to combat the insolvency of the companies.
KfW: Many companies feel a heavy burden on liquidity
According to the second KfW special survey, an average of 60 percent of small and medium-sized enterprises do not expect their business situation to normalise before around 8.5 months – i.e. around March 2021.
KfW Chief Economist Fritzi Köhler-Geib explains: “The way out of the Corona Valley will be a long and arduous one. A large number of medium-sized enterprises continue to feel a heavy burden on their liquidity”.
According to this KfW survey, 45 percent of all SMEs currently only have sufficient liquid funds for a maximum of two months. A further 24 percent can fall back on liquid funds for two to six months. 6 percent of SMEs have liquidity reserves of up to one year before they are threatened with closure. At least a quarter of the medium-sized companies have sufficient liquidity reserves according to their own statements. Link to the KfW survey here: https://www.kfw.de/KfW-Konzern/Service/Download-Center/Konzernthemen/Research/Fokus-Volkswirtschaft/
Radical savings service in purchasing against insolvency
If companies can save money in the purchase of goods and services, this saves their liquidity. The companies are aware of this, yet most of them lack the time to renegotiate all offers from their suppliers. Now Kloepfel Services offers companies to optimize concrete offers that are ready to be ordered, starting at 500 Euros. It does not matter whether it is office furniture, computers or craft services.
Renegotiate supplier offers within 24 hours
If the purchasing department wants to purchase products or services and has all the necessary approvals and specifications, then it only needs to forward the requested offers from the suppliers to Kloepfel Services by e-mail anfrage@kloepfel-services.com.
The negotiation professionals of Kloepfel Services will then immediately call the supplier who submitted the offer and try to reduce the price. Experience shows that price reductions between three and five percent are possible.
If Kloepfel Services was able to negotiate successfully with the supplier, they send the new offer back to the customer within 24 hours. The purchasing department can only win, because the supplier’s offer can never get worse, only better.
If desired, the terms of payment can also be negotiated. When liquidity is tight, long payment terms are worth their weight in gold.
Five- to six-digit savings per year
Over the year, savings in the five- to six-digit range, depending on annual turnover, are achieved. The typical special feature of Kloepfel: The customer does not have to pay any consulting fees but shares half of the savings with Kloepfel Services.
Companies must check their liquidity management
Marc Kloepfel, CEO of the Kloepfel Group, says: “With this 24-hour service we want to help companies immediately and in an uncomplicated way to save money in their purchasing and to preserve their liquidity. In addition, however, every entrepreneur should also carefully examine which possibilities for improving liquidity he can still implement. That can be: Factoring, effective receivables management, use of cash discounts and rebates, financing necessary purchases through leasing instead of through loans and other measures”.
Website for this service: https://www.kloepfel-services.com/leistungen/kloepfel-quick-deals/