August 05, 2019
Liquidity is an extremely essential element for any company, if it wishes to continue with its activity. In simple words, if there is no liquidity there is no company, because due to this you will not have the ability to make day-to-day payments. Liquidity is defined as the ability to cope with short-term payments.
5 cases for which an autonomous or company needs to have liquidity
Next, we will tell you what are the main reasons why a company or freelancer requires liquidity. One of the best ideas in these cases if you run out of liquidity, is to think about the urgent credits, since they are of great help for any economic urgency you have.
1. Payroll of workers
According to Article 4.2 f) of the Statute of Workers, it is established that it is One of the fundamental rights of every worker is the timely receipt of the remuneration agreed or legally established.
In this regard, article 32 of the Workers' Statute establishes a series of guarantees related to salary, stating that salary credits enjoy preferences, with different conditions, on any type of credit.
In addition, article 29 of the same law indicates that “The liquidation and payment of the salary shall be made promptly and documentary at the agreed date and place or in accordance with the customs and customs. The periods of time referred to in the payment of periodic and regular remuneration where they may not exceed one month.
2. Payment to suppliers
A breach of payment to suppliers could lead to the impossibility of continuing its activity. For example, if a company depends on transport and does not make payments to carriers, this company would be immersed in a serious problem.
But nevertheless, since 2013, with the application of the delinquency law, maximum deadlines are established for making payments for commercial operations of 60 days for private companies and 30 for public administrations, time that begins at the time of delivery of the product or service. In cases of delay, the delinquency law allows interest for late payment and compensation to be requested.
Although, companies can also use various payment tools to suppliers such as confirming, where a company asks a financial institution to manage payments to its suppliers.
3. Cope with taxes
Throughout the year, companies and freelancers must face tax payments such as VAT, personal income tax, social taxes, etc. Non-payment of taxes within the established period will generate a surcharge, which means that the tax debt will be even greater. For this reason, it is important that companies and freelancers have a good liquidity that allows them to meet their tax obligations within the established deadlines.
4. Investment in innovation
If there is not enough money to make an investment in innovation, the company will be obsolete and cannot be distinguished from the competition. It is therefore, to have enough financial capital for new ideas and new technologies is essential.
Innovation not only means that the company can last over time, but that the company can adapt to changes.
Regardless of the sector where we work these are constantly evolving and changing and companies must adapt to these changes, since the competition will begin to offer a new variety of products and services because customers and suppliers demand news. If you do not have the capacity for innovation, the company is destined to fail. At present, business competition is based on differentiation.