Read on a range of valuable insights and informed opinions from some of Asia's leading banking and business professionals
Working Capital Edition
Cash flow challenges from increasing open account trade
In today's ultra-competitive global market, exporters are under increasing pressure to offer open account trade to buyers who are eager to extend their payment terms with suppliers in order to generate cash flow and reduce borrowing. And while this obviously places an additional burden on cash flow for sellers, the latest generation of supply-chain financing solutions provide a way that companies can compete for business and meet the terms of their buyers, without necessarily increasing their own risk exposure or having to secure external financing.
Optimising receivables to generate working capital
Many leading organisations are also looking to further automate some of their critical back office procedures in order to optimise efficiencies and free up working capital. Introducing an automated accounts receivables solution not only drives internal back office efficiencies, but it also helps mitigate risk, improve visibility and control, and improve company liquidity.
Releasing working capital with corporate cards
Company credit constraints can also create an added burden when it comes to cash flow and the supply chain, and can cause significant obstacles in terms of doing business if the company is unable to free up working capital in order to pay vendors on time. Smart organisations are increasingly looking to unique solutions in order to improve cash flow and keep the sales cycle moving, one of which is the introduction of a corporate credit card that can be used to cover company expenses and pay vendors alike.
Taking working capital from functional to fundamental
The role of the corporate treasurer is also changing, moving towards a more proactive, organisation-wide approach to liquidity management. No longer simply accountable for providing critical tools to manage cash flow and negotiating contracts, today's elite treasurers are perpetually improving their approach to working capital management, weaving this into the very DNA of their business in order to preserve liquidity.
Improving working capital by centralising treasury operations within the AEC
As the ASEAN bloc continues to grow in economic stature, corporate treasurers throughout the region are looking to Southeast Asia as a strong choice of locale in which to establish a centralised treasury hub. Now, with the advent of the ASEAN Economic Community (AEC) on our doorstep, we explore the progress that has been made in terms of establishing the AEC and the key incentives that are being offered in some of the region's key markets.
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