Companies used to offer working capital or (supply chain finance) programs to their suppliers primarily in conjunction with a single bank. That was great for the bank, of course, because it allowed the bank to set the terms of the working capital program, to tie the company into a close, long-term relationship, and to gain maximum benefit from lending money to the company’s suppliers while only taking on the credit risk associated with the company itself. The company in question would, of course, usually be a multinational, large or mid-market business with a good credit rating.
Supply Chain Finance
As the “chief growth officers” in an organization, CFOs play a crucial role in steering the enterprise toward profitable growth. Re-thinking the role of treasury in the midst of rapid growth is required to ensure success in the digital era. What separates winners from laggards is a treasury management system that equips treasury with the ability to take a more prominent role in driving both operational efficiency and execution effectiveness across business units.
Some finance professionals and organizations are eager, early adopters of new technologies and solutions. Others are not for various reasons, with cost and internal adjustments being the two biggest deterrents.