FSW Trade Finance Can Help Optimize a Company’s Working Capital Through its Supply Chain Finance Program

Working capital has graduated to a higher focus these days. As a former Treasury manager, my team and I would siphon through the numbers to ensure that we had the cash flow to continue that day’s operations, as well as forecast out to ensure we knew where all the liquidity obstacles resided. Looking back, I wish we had the opportunity to utilize Supply Chain Finance (SCF) at the time. SCF would have made our working capital management efforts so much easier, as well as efficient!

Today, working capital management is no longer just a key treasury function. Working capital is the one area senior management and its staff is reviewing- crossing treasury, sales, operations, accounting lines as well as the Executive Office.

With the combination of today’s automation, digital-physical systems and data analytics, the entire business environment needs to assist with improving the efficiency of working capital management. We have written about the technology disruption in previous posts. Enhanced technology is here to stay. Companies need to embrace the change, implement it to remain competitive and figure the best method to fund. The answer is Supply Chain Finance (SCF)! SCF has been around for decades at the large company level. Small medium enterprises (SMEs) have not had the resources to take advantage of SCF. Today they do.

FSW Trade’s QuickPay SCF program can assist a client to efficiently optimize its working capital. SCF is a simple concept:  Let’s extend the client’s accounts payable terms at generally no cost and pay those suppliers’ receivables who want to be paid early for a small discount. I have said it before, “It’s a win-win solution.”

The concept bears repeating. SCF has two main components: 1) Buyer extends accounts payable terms, and 2) Supplier has the option to get his invoices paid early. How simple is that for both parties’ working capital optimization? Leverage FSW Trade’s QuickPay today to assist with your working capital management.

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