Latest Financial Supply Chain Articles

Analysing Liquidity using the Cash Conversion Cycle

Gil Gadot , Fundtech | 24 July

The global financial crisis of 2008-09 triggered a radical reshaping of the corporate treasury landscape. While moving cash around a company as efficiently and effectively as possible is an age-old problem for treasurers, its successful management has become even more challenging in the post-crisis era.

Bank Payment Obligation: A Tortoise in the Race?

Oliver Spitz, UniCredit | 17 July

Bank Payment Obligations (BPOs), are becoming a popular alternative to both letters of credit (LCs) and open accounts, with their use predicted to catch up with LCs by 2020. This article outlines the benefits and also explains why until now take-up has been fairly subdued.

AR Purchase: A Financial Supply Chain Tool for Treasurers

Samuel Moore, Fifth Third Bank | 21 April

Corporate treasurers work diligently to arrange the tools needed to manage and fund their firms’ activities. Liquidity sits among the core points on which they focus, yet opportunities may exist to accelerate liquidity that lies dormant. Selling your receivables can accelerate cash conversion and address risks of concentration and foreign account debtors.

Bank Payment Obligation: A New Instrument in Supply Chain Finance

Frank-Oliver Wolf , Commerzbank | 4 April

International trade is increasingly conducted on an open account basis, yet this does not provide treasurers with any risk mitigation nor the opportunity for effective cash management. As these requirements grow in importance, the answer may therefore come in the form of a bank payment obligation (BPO), which both ensures the viability of settlement by open invoice, while at the same time allowing optimisation of working capital and provision of liquidity.

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