Unlocking Hidden Cash for SMEs

Switzerland’s small and medium-sized enterprises (SMEs) are the backbone of the economy, accounting for over 99% of companies and the majority of jobs. They are renowned for precision, reliability, and innovation. Yet, beneath the surface of many otherwise healthy businesses lies a common problem: cash that is tied up, trapped in operations rather than fueling growth.

The truth is, most SMEs underestimate just how much liquidity sits idle. Slow-paying customers, manual financial processes, and excess stock are invisible drains on cash flow. The right leadership focus, combined with new technologies, particularly artificial intelligence (AI), can turn this challenge into an opportunity.

This is not about multi-year digital transformations or expensive system overhauls. It is about freeing up significant cash within months, not years. And for many Swiss SMEs, that can mean the difference between treading water and funding bold moves.

The Hidden Cash in Everyday Operations

Cash is not always sitting in a bank account. More often, it is stuck in the mechanics of the business:

• Receivables: When customers pay late, liquidity evaporates. Even small delays in payment terms add up quickly.

• Payables: Paying suppliers too fast, or not optimizing terms, means cash leaves the business earlier than necessary.

• Inventory: Extra stock might feel like security, but in financial terms it is frozen capital.

These three areas, receivables, payables, inventory, form what is often called the cash conversion cycle. Many SMEs accept inefficiencies here as the way things are. But a focused effort can shorten this cycle and release meaningful sums.

How Fast Can Cash Be Freed?

This is the question that matters most for owners and managers: how quickly can improvements show up in the bank account? The answer: faster than most expect.

• Weeks, not months: Changes in how invoices are issued, tracked, and followed up can have an immediate impact.

• Months, not years: With the right tools, SMEs often see a noticeable acceleration of payments within three to six months.

• Ongoing: The real prize is a cultural and technological shift that keeps liquidity flowing steadily over time.

This is not theory. Across Europe, studies show that even modest improvements in payment speed and efficiency can release cash equivalent to a meaningful share of revenue. For SMEs, that can translate into six or even seven figure sums. This is real money to reinvest in growth, innovation, or debt reduction.

Why People Still Matter in the Age of AI

Technology is powerful, but it is not self-running. Many Swiss SMEs have already experimented with digital tools, yet without strong ownership, results are mixed. The difference-maker is people:

• A finance leader who takes explicit responsibility for cash flow strategy.

• Teams that are trained to value liquidity as much as sales.

• A mindset that views AI and automation as partners, not replacements.

The combination of leadership focus and modern tools is what transforms cash management from reactive to proactive.

Where AI Tools Change the Game

Artificial intelligence is no longer futuristic. It is becoming practical for SMEs:

• Smarter receivables management: AI can prioritize which invoices to chase first, based on likelihood of payment.

• Predictive forecasting: Instead of relying on static spreadsheets, AI models can project cash flow trends and flag risks early.

• Process automation: From capturing invoices to matching payments, AI reduces manual effort and cuts error rates.

For Swiss SMEs, where margins are often tight and precision matters, AI provides visibility and control that previously required large finance teams. Many of these tools are affordable, cloud-based, and designed with SMEs in mind.

How Much Is at Stake?

Every SME is different, but the scale of opportunity is significant. Reducing the cash conversion cycle by even a modest amount can free funds equivalent to several percent of annual revenue.

For a mid-sized Swiss company, that might mean hundreds of thousands of francs released back into the business. That is cash that can:

• Finance expansion without new loans.

• Invest in product development or technology.

• Provide a cushion against economic volatility.

In other words, the upside is not just about numbers on a balance sheet. It is about strategic freedom.

Why Now Is the Right Moment

Two forces make this moment unique for Swiss SMEs:

1. Economic uncertainty: Resilience requires liquidity. Having cash on hand gives firms the ability to adapt, invest, or weather downturns.

2. Early-stage AI adoption: Many SMEs in Switzerland are still experimenting with AI. That means those who act decisively now can gain an edge, both in cash flow management and in broader productivity.

   
   

The window is open, but it will not stay open forever. Once AI adoption becomes mainstream, the advantage of being early will narrow.

The Competitive Advantage

Freeing up cash is more than a financial exercise. It is a competitive strategy. An SME with stronger liquidity can:

• Move faster on opportunities.

• Negotiate from a position of strength.

• Invest while others hesitate.

Because many competitors are still operating with traditional processes, those who modernize first enjoy a clear head start.

Final Thought

For Swiss SMEs, cash is not just king. It is freedom. Too often, liquidity is left trapped in day-to-day operations. With the right people leading the charge, and with AI tools providing speed and insight, unlocking that cash is faster and more achievable than most realize.

The opportunity is here, now: free cash in weeks, build momentum in months, and secure long-term resilience for years to come.