Being solvent without taking out loans

The average potential for saving overhead costs in small and medium-sized entities (SMEs) amounts to about 20%, says Mr. Arnd Halbach, business development manager with »Expense Reduction Analysts« (ERA). This figure represents quite a lot of money which could increase the liquidity of SMS without taking out loans and thus interest-free.

The financial markets are volatile, the economy is holding its breath. Risk premiums increase interest rates and a feeling of fear in the banking business is palpable – even local banks suddenly require unusual collateral, warns Mr. Halbach. Therefore, long-term and regular savings are necessary.

However, due to international competition in many core businesses it is hardly possible to save major amounts of money. Many companies do not make adequate use of saving potentials with regard to their overhead costs, criticizes Mr. Halbach. But quite often six-digit saving figures could in many cases be realistically achieved. Without these savings huge amounts of money have to be raised through loans. All this requires additional money.

ERA specializes in cost analysis with regard to insurances, logistics, energy and office supplies. GERMAN