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…
Cash & Working CapitalTechnology
January 30, 2020

Smoother Sailing: The Benefits of Dynamic Discounting

How C2FO’s solution helps one company’s treasury team smooth its cash flows. Successfully adopting dynamic discounting (DD) to execute early payments requires internal alignment across multiple functions in a corporate’s organization—as well as finding the right vendor and solution. However, the technology’s many benefits, including smoothing out cash flow for both the company and its suppliers, provide a persuasive argument. A treasury executive from a major technology company explained her firm’s challenges and the benefits of implementing C2FO’s DD platform…
Capital AllocationCapital MarketsCash & Working Capital
January 9, 2020

The Art—Not Science—of Matching Capital Allocation to the Situation

Treasurers discuss balancing the need for liquidity with keeping cash levels moderate as business ebbs and flows. Decisions about capital allocation help treasury pave the way for the road ahead and may take on added importance for businesses generating lots of cash—as well as for those whose growth is downshifting. Treasurers at a recent NeuGroup meeting of life sciences companies shared approaches to the challenges of allocating capital during a variety of scenarios and situations. Optimal capital allocation amid uncertainty.…
Cash & Working CapitalTreasury Management
January 23, 2019

Fintechs Transforming Supply Chain Finance

Fintech companies continue to streamline the buyer-supplier experience, eliminating age-old tensions and adding powerful new tools. Editor’s Note: This story originally ran on iTreasurer.com on December 19, 2016. EXECUTIVE SUMMARYMultinational corporations (MNCs) face a myriad of challenges and arguably the most important one is staying competitive during periods of uncertainty and increasing regulation, as global interconnectedness continues. In order to successfully navigate this uncertain environment, MNCs must develop sustainable working capital strategies and build cash positions that underpin these strategies,…
Cash & Working CapitalTreasury ManagementUncategorized
May 5, 2015

On-Behalf-Of Structures: Lessons Learned

More companies are moving to streamline their payments and collections with on-behalf-of structures. Here are some lessons from the field. (Editor’s Note—Original publication date: May 5, 2015) Being a trailblazer is always nice but sometimes it pays to be the one who comes along next and learns from the trailblazer’s mistakes. And certainly, the more multifaceted the effort, the bigger the lessons learned. Such is the case with corporate payment and collections, part of the growing importance of supply-chain management…
Cash & Working Capital
June 16, 2003

Crossborder Pooling: Notional vs. ZBA

For many MNCs, an emphasis on effective management of working capital has translated into renewed urgency in rationalizing liquidity structures. (Editor’s Note—Original publication date: June 16, 2003) The tight credit market—combined with general economic weakness—has forced a strong focus on cash and liquidity management for both cash-rich and cash-poor companies. As the ability to generate cash (or borrow it) has declined, MNCs report an increased need to have a clear view of their cash position globally. Visibility, however, is not…