Liquidity Check
An initial assessment in just a few minutes: is your company solvent – today and in three weeks?
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Is your company solvent – today and in three weeks?
Illiquidity is the most common ground for insolvency. Those who recognise it early still have every option open – from an out-of-court settlement and the StaRUG (German Corporate Stabilisation and Restructuring Act) to the protective shield. Our Liquidity Check gives you initial guidance in just a few minutes.
The check
Enter the amounts in euros. Rough figures are sufficient for an initial assessment.
The check provides non-binding guidance based on the information you enter. It does not replace an assessment of insolvency by an adviser, nor does it constitute legal advice.
How we calculate
The check compares your available funds with your liabilities due – once on the reference date and once looking ahead over the next three weeks. The benchmark is the case law of the Federal Court of Justice on illiquidity (§ 17 InsO):
| Outcome | Condition | Meaning |
|---|---|---|
| Green | Coverage today and in three weeks of at least 100 % | No indications of illiquidity. Now is the best time to safeguard your planning. |
| Yellow | Covered today, but not in three weeks | Impending illiquidity possible. The protective shield and – provided there is no over-indebtedness – the StaRUG are still available. |
| Orange | A gap today that remains below 10 % or closes within three weeks | Temporary payment shortfall or incipient illiquidity. The situation should be reviewed at short notice. |
| Red | A gap of 10 % or more that does not close even within three weeks | Illiquidity likely. The filing deadline of no more than three weeks is running (§ 15a InsO). |
Frequently asked questions
When is a company illiquid?
When it is unable to meet its payment obligations as they fall due (§ 17 InsO). According to the case law of the Federal Court of Justice (BGH), a liquidity gap of 10 % or more that cannot be closed within three weeks generally indicates illiquidity. A smaller gap is usually merely a temporary payment shortfall.
What does impending illiquidity mean?
The company is likely to be unable to meet its payment obligations over the next 24 months (§ 18 InsO). At this stage, most restructuring routes are open, including the StaRUG and protective shield proceedings.
What is over-indebtedness?
Over-indebtedness (§ 19 InsO) is assessed in two stages: is it more likely than not that the company will continue in business over the next twelve months (going-concern forecast)? And do the assets, valued in an over-indebtedness statement, cover the liabilities (arithmetical over-indebtedness)? Over-indebtedness is a ground for insolvency only if the forecast is negative and there is arithmetical over-indebtedness. Negative equity on the balance sheet alone is not sufficient, but it is a warning sign.
What deadlines apply to the insolvency petition?
In the event of illiquidity, management must file an insolvency petition within three weeks at the latest; in the event of over-indebtedness, within six weeks at the latest (§ 15a InsO). Payments made after the company has become insolvent can lead to personal liability (§ 15b InsO).
Is my information stored?
No. The calculation takes place exclusively in your browser. No data is transmitted to LECON or to third parties.
More on restructuring routes: Self-administration & protective shield proceedings · Restructuring plan under StaRUG · Restructuring options
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