Effective use of cash management with cash management and trade finance products brings tangible benefits to businesses and financial institutions.
If managed correctly, it can significantly reduce financial risk; Ensures the company has sufficient liquidity for payments due and to monitor payment flows and assists in implementing strategies that lead to the best borrowing rates and lower investment costs.
Liquidity (i.e. working capital)
- Measure, monitor and manage cash flow to protect solvency.
- Establish good financial contractual conditions
- Ensure that no excess working capital is tied up in the business
- Arrangement for supply chain finance
- Cross-border liquidity management
Funding (i.e. long-term funding) –
- Create an optimal mix of equity and debt to meet capital expenditure and investment needs.
- Determination of the optimal capital structure and reduction of the cost of capital through long-term fundraising activities
Financial risk management
- Identify potential risks and their impact and take steps to mitigate them.
- Extending credit to the end user while continuously reducing the risk of potential defaults
- Structured hedging program
- Integration of currency and commodity price risk management