Who this is for: Businesses with fixed monthly commitments such as salaries, rent and EMIs.
A business emergency fund is sized on committed monthly outflow, not on revenue. It exists so that a slow quarter does not force distress borrowing or delayed salaries.
We calculate your committed outflow, agree a coverage period appropriate to your sector and receivable cycle, and define where the reserve is held so it stays liquid and separate.
We also set the rules: what qualifies as an emergency, how the fund is replenished and who authorises its use.
Challenges this addresses
- Reserves absorbed into daily operations
- Disruption handled through short-term borrowing
- No agreed definition of an emergency
- Reserve held in illiquid form
What the engagement includes
- Committed outflow computation
- Coverage period recommendation
- Liquidity and holding structure
- Usage and replenishment rules
- Annual re-sizing review