BankingCash & Working Capital
March 26, 2020

Listen Up: A Banker’s Reality Check for Corporates Tapping Credit Lines

Societe Generale offers insights on bank pricing and priorities as companies seek cash safety. Companies determined to bolster their balance sheets by tapping revolvers or looking for loans, take heed: Bankers will view some drawdowns and requests much more favorably than others, and it pays to understand the bank’s perspective. That insight and others emerged during comments by Guido van Hauwermeiren, Societe Generale’s head of coverage and investment banking in the Americas. He spoke this week during NeuGroup’s Assistant Treasurers’…
Capital MarketsCash & Working Capital
March 26, 2020

Beyond Revolvers: What NeuGroup Members are Talking About Now

More of Joseph Neu’s takeaways from virtual meetings dominated by talk of cash and liquidity. The waterfall of insights cascading from NeuGroup’s virtual meetings this month requires expert judgment on wringing out and distilling what matters most. One expert is NeuGroup founder and CEO Joseph Neu, who on Tuesday offered his take on tapping credit lines. Here are some of his other takeaways: Converts as an option. Industrial companies said they are looking at the convertible debt market as a financing…
Capital AllocationCash & Working Capital
February 27, 2020

A Look Back at Our Enterprise Reconciliation Insight

Founder’s Edition, by Joseph Neu A 20-year-old best practice guide says a lot about the state of working capital management today. There seems to be a lot of renewed interest in working capital management lately, with a focus on automating processes, capturing data and deploying technology. The goal: to improve analysis and predictability of the quote-to-cash, order-to-delivery and purchase-to-pay cycles. This stands to vastly improve working capital management, but especially cash and liquidity management. I kept thinking, all of this…
BankingCash & Working CapitalNGI
February 27, 2020

A Treasurer Grows Frustrated with a Top US Lender and Takes It down a Notch

Seeking a bigger return on its capital as rules tighten, the bank wanted a larger share of wallet. One of the largest US commercial lenders is aggressively seeking more return—share of wallet—for the credit it provides corporates, prompting at least one borrower to say “enough” and downgrade the bank’s rank in its loan syndicate. That takeaway emerged at a recent NeuGroup meeting where members exchanged insights about syndicated loan market trends and discussed which banks are eager to extend credit…
Cash & Working CapitalTechnology
February 20, 2020

Mining Merchant Services for Today’s Gold: Data

Founder’s Edition by Joseph Neu The drive to access and leverage data from credit card and other transactions is transforming merchant services. Merchant services are fast becoming a key value driver for transaction banks, fintechs and other financial services institutions. The key reason is the importance of capturing data at the point of sale, along with facilitating frictionless transactions. What takes place under the heading of merchant services is worth your attention because: It’s the beginning of the data-rich order-to-cash…
Cash & Working CapitalNGI
February 18, 2020

Negative-Rate Concerns Spreading to Pension Funds

US MNCs with European pension funds are being forced to contend with negative rates in Europe. Although the likelihood of negative interest rates in the US still seems remote, in Europe they’ve been a reality for several years, and pension funds are now grappling with what that means.  In a recent NeuGroup meeting, the head of pension investments at a multinational corporation (MNC) with several European funds noted that for the first time the company will have to use negative interest rates to value liabilities, specifically…
BankingCash & Working CapitalTechnology
February 13, 2020

Making Bank on Receivables

Founder’s Edition by Joseph Neu Investor demand for receivables-backed securities presents opportunities for banks that harness data, technology. Last week, I noted how supply chain finance (reverse factoring et al) was raising concerns with accountants, rating agencies and regulators because it allows unscrupulous firms to potentially extend payables to fund their working capital without considering it to be debt. This week I focus on the positive sides of trade finance and, especially, supply chain finance: Thinking about receivables plus data…
Cash & Working CapitalTechnology
February 11, 2020

Treasurers Educate HighRadius on Cash Forecasting Needs

NeuGroup members give to get by providing feedback on AI-based cash forecasting solutions. Treasurers at a NeuGroup meeting in Texas sponsored by HighRadius provided feedback to the Houston-based technology company on what they’d like to see from cash forecasting solutions that use artificial intelligence (AI) and machine learning (ML) to improve accuracy, reduce treasury’s need to input data and allow a wider variety of pertinent data. HighRadius has long provided forecasting services for accounts receivable (AR), the biggest component of…
Cash & Working CapitalTechnology
February 11, 2020

Steps on a Technology Journey to Data-Driven Decisions, Actions

A detailed look at the progression of one tech company’s digital transformation. Building and using a data lake that is a centralized source of data is a key part of the modernization and technology journey for treasury at one leading tech company; a progression from being data aware to data proficient to data savvy to achieving data-driven decisions and actions. A treasury cash operations manager presenting details of this journey at a NeuGroup meeting said a top priority was “wading…
Cash & Working CapitalComplianceTechnology
February 4, 2020

Supply Chain Finance Faces Rising Regulatory Scrutiny

Founder’s Edition, by Joseph Neu Making sense of calls to increase debt classification and disclosure requirements for reverse factoring. I received an email recently from a consultant giving me a heads-up about a potential financial reporting change that could adversely impact the multibillion-dollar market for supply chain finance. Extended payables vs. debt. At issue is the ability of companies to use a financial intermediary to pay suppliers at a discount while extending their payments terms to the suppliers (sometimes in…