Blog
Liquidity is not a goal.
It is an attitude.
An interview with Thorsten Klindworth, CEO of A.B.S. Global Factoring AG, on the art of financing in uncertain times.
“Liquidity is the blood of a company.” A metaphor that is used so often that it is easy to forget what a living, sensitive organism a company actually is. In the midst of multiple crises, disrupted supply chains and growing uncertainties, Thorsten Klindworth, CEO of A.B.S. Global Factoring AG, talks about the role of financing as a strategic element – and why we must learn not only to analyse figures, but to understand them.
Mr Klindworth, when people talk about factoring, it's usually about liquidity. But how do you view this term personally - beyond the balance sheets?
Liquidity is often understood as a technical term – as a figure in the bank account. For me, it is more than that: it is the expression of the ability to act. A company without liquidity is like a body without circulation. It loses its flexibility, its vigour. That’s why I believe that those who manage liquidity with foresight take responsibility – for their own future and for that of their employees.
Factoring is often seen as a mere financing instrument - but what do many people overlook?
I like to compare factoring to an early warning system. It is not just a financing solution, but also an indicator of payment behaviour on the market, creditworthiness trends and liquidity risks. Our customers benefit from the fact that we not only pre-finance money, but also provide information. In uncertain times, this is often the decisive advantage.
You talk about uncertainty. We have experienced multiple crises in recent years: Pandemic, supply bottlenecks, geopolitical tensions. How is this changing the role of financing partners?
Today, companies need more than just a lender. They need a partner who thinks, feels and plans with them. The SMEs we support don’t just want money – they want guidance. Our job is to provide trust and security. Not through promises, but through reliability.
And what does that look like in concrete terms, for example with purchase financing?
Purchase financing, such as with our quickpaid product, is much more than just balance sheet cosmetics. It can create strategic freedom – especially when supply chains are under pressure. If you want to purchase larger quantities early on, negotiate better prices, secure stock levels or utilise your cash discount terms, you need liquidity. If we create this possibility, we contribute to competitiveness.
Figures tell stories - but not always at first glance. Many key business figures are like icebergs: only a small part is visible, the decisive part lies beneath the surface. Which of these "invisible" key figures are you focussing on today?
I am a big fan of cash conversion cycles. They say a lot about how efficiently a company generates and utilises liquidity. But even more important is the question: Do companies themselves understand what their figures mean? Many are strong in operational business – but when it comes to financing and key figures, the translation is sometimes lacking.
After all, liquidity is not a goal that is achieved at some point and then ticked off. Liquidity is an attitude – it reflects how a company thinks, plans and acts. Those who internalise this make different decisions – more foresighted, more conscious, more resilient. This is exactly where we come in.
Technology is rapidly changing this landscape. What role does artificial intelligence play in your organisation - and how is it changing the factoring business?
AI can help to identify risks earlier, automate processes and refine analyses. But it must never be an end in itself. We use AI where it creates added value. But people remain the decisive component. In SMEs in particular, it’s not just the score that counts, but the dialogue. The relationship. An understanding of the specific business model. That is important to us.
You run a company that is supposed to create stability for others. How do you remain stable yourself - and innovative at the same time?
I see my role as creating space: for clarity, for discussion, for responsibility. For me, stability does not mean leaving everything as it is – but being in a position to shape change. Innovation doesn’t come from pressure, but from trust.
In conclusion: What do you wish for the German SME sector - and what do you personally wish for as CEO?
I would like to see more courage for dialogue. Between financiers and entrepreneurs, between technology and practice, between analysis and intuition. And personally? That we at A.B.S. can continue to make a contribution – not only to the liquidity of our customers, but also to their entrepreneurial freedom and thus make a significant contribution to Germany as a business location and the other markets in which we operate, and thus to the prosperity of us all. This is what drives me and my team every day.
