BankingCash & Working CapitalTechnology
October 20, 2020

Helping Treasury See Beneath the Payment Iceberg

TIS makes the case for treasury as gatekeeper of payment processes.Nearly half the members at a recent meeting of NeuGroup’s Global Cash and Banking Group (GCBG) said treasury at their companies is responsible for treasury payments only—not for, say, accounts payable (AP) or payroll. Just 15% of those surveyed said treasury completely owns payment processes and tools. Treasury Intelligence Solutions (TIS), sponsor of the meeting, made a case for making treasury the overall “gatekeeper” of all payment processes—with the help…
Capital AllocationCash & Working Capital
October 13, 2020

The Cup Runneth Over: Corporates Awash in Cash Mull Options

Treasurers discuss concerns about companies rushing to deploy cash too quickly.When uncertainty abounded at the start of the pandemic, companies drew down revolvers, issued debt, cut capital expenditures (capex), halted share repurchases—whatever it took to conserve cash for the troubling times ahead.  A few months later, after massive government stimulus and a recovering economy, many are awash in cash and trying to figure out what to do with it—or not do with it.At a recent NeuGroup meeting for large-cap companies,…
Cash & Working CapitalCOVID-19Risk Management
October 8, 2020

Retailers Assess Capital Structure Amid Signs of Rebound

As the economy revives, companies pay down revolvers, resume buybacks and assess counterparty risk. At a recent NeuGroup meeting of treasurers at retailers, sponsored by U.S. Bank, members discussed stock repurchase programs, paying down revolvers and monitoring the impact of capital structure changes on leverage ratios and credit ratings. Members discussed moving from preparing for worst case scenarios in April and May (by increasing liquidity, initiating new revolvers) to more recent moves made in anticipation of returning to more normal operations.…
Cash & Working CapitalTechnology
October 6, 2020

Transforming Treasury: The Power of a Data Warehouse and BI Tool

How one tech company is making use of better centralized data to improve forecasting. Better data makes for better forecasts, reporting and data analysis. At a recent NeuGroup meeting, one member of a large technology company’s treasury team described the results of a two-year project to create a global treasury data warehouse to raise its data game. The company’s vision: a centralized data repository with BI reporting that integrates and organizes bank statement, market, ERP and forecasting data.The benefits of warehouses: data…
Cash & Working CapitalESG
October 1, 2020

Dangling Carrots in Supply Chain Finance to Boost Sustainability

HSBC’s SCF incentives help a big retailer make progress on sustainability goals.The pandemic has prompted companies to pay more attention to their supply chains, to support key suppliers and make them more resilient and sustainable. A recent HSBC survey found that 70% of companies want to improve control over supply chains, half seek more transparency, and a third want to accelerate making them more environmentally sustainable, planning investments over the next 12 to 18 months to do so.The assistant treasurer…
Cash & Working Capital
September 25, 2020

Payments Ownership by Treasury and Other Founder KTAs from GCBG 2020 H2 Meeting

By Joseph Neu During NeuGroup’s second meeting of the fall season, Global Cash and Banking Group members discussed a variety of cash and payment topics in sessions sponsored by TIS. Below are a few takeaways I wanted to share. Cash forecasting: one size doesn’t fit all. One member shared the conclusion reached after six months of benchmarking to find an appropriate third-party vendor to improve cash forecasting, that there is no one-size-fits-all solution. The approach has to be tailored to each…
Cash & Working CapitalInvestment ManagementRisk Management
September 17, 2020

Weighing Reward vs. Risk, Cash Investors Make Moves or Hunker Down

Some take advantage of opportunities to pick up yield; others play it safer and stick to government money funds.The Covid crisis has illuminated where corporate cash investors sit on the risk tolerance spectrum—a point underscored in a Virtual Interactive Session sponsored by ICD this week that gave some NeuGroup members a clearer picture of where they stand relative to their peers.Career risk vs. opportunity for yield. Hearing what some peers have done “reinforces how conservative we really are,” said one…
BankingCash & Working Capital
September 17, 2020

Talking Shop: The Philosophy of Fees on Revolving Credit Facilities

Question:  “Do you pay the same arrangement fee for a 364-day revolver renewal as for a 5-year renewal?” “We executed our first 364-day revolving credit facility last year (in addition to a five-year) and it is time to renew the 364-day facility. We only have 50% of the banks participating in the 364-day renewal. We were thinking to pay a proportionate amount of arrangement fees to the lead banks. I don’t think they have to do very much since we…
Cash & Working CapitalCOVID-19
September 8, 2020

The Road Beyond Recovery: Corporates’ Upbeat View of Working Capital Management

A majority of companies in a recent Deloitte poll say that they are already in stabilization or growth mode. Working capital is an issue never far from a treasurer’s thoughts, and the uncertainty the pandemic has brought to corporate cash flows has made it only more relevant. A recent survey by Deloitte of 1,500 C-Suite and other executives revealed what Anthony Jackson, a Deloitte Risk & Financial Advisory principal, called unexpected results. A majority of respondents said their companies are…
Cash & Working CapitalTechnology
August 20, 2020

Smart Move: Deploying Artificial Intelligence to Manage Cash as Inventory

A member’s quest to improve cash visibility begins to bear fruit just as the crisis hits. “When there is a crisis, treasury becomes very important,” a member of the European Treasury Peer Group said at a recent meeting where he and a colleague shared their progress on a project to improve cash forecasting, in part by viewing cash as inventory to be optimized. Cash forecasting, a critical concern for treasury teams at all times, is especially important amid the extreme…