Supply Chain Finance: Unlock Working Capital
Cash flow holds the power to make or break a company, to induce the survival of a business or be the cause of oblivion. Working capital is the lifeblood for the health of companies, both big and small. Managing working capital is like a dance, it’s a balancing act. Now more than ever it is important for businesses to optimize this fundamental aspect of financial performance if they plan to maintain a steady course in these unprecedented times.
Among the current uncertainties within the global trade landscape, companies have even more reason to manage working capital as effectively and efficiently as possible. The key objectives to effectively managing working capital are to meet obligations and grow the business. Businesses must secure liquidity to cover expense obligations while leveraging assets to support business growth and development.
According to a 2018/2019 study by PwC, global listed companies could release as much as €1.3tr from their balance sheets by improving the performance of working capital management. This would provide companies with cash to fund growth and invest in other parts of their business.
Supply chain finance is a major contributor in helping companies to achieve this and overall efficiency within business operations. Clients use supply chain finance to unlock working capital in the supply chain and free up liquidity to allocate towards growth initiatives.
Here is how our Supply Chain Finance Program can improve working capital management:
Supply chain finance: Our supply chain finance program enables both buyers and sellers to benefit from longer payment terms while providing suppliers with third-party funding. As a result, days sales outstanding is dramatically improved.
Flexible funding: Our supply chain finance program combines purchase order funding and invoice discounting to cover the full length of the supply chain, bridge funding gaps, and maximize client flexibility.
Award winning platform: Using our intelligent platform, clients overcome internal silos with access to visibility and insights on working capital performance analysis.
Get in touch to learn more how TradeRiver USA can help optimize business working capital.