Low interest rates and uncertainty around inflation are forcing corporate treasurers to look at their processes.
They will need to improve their short-term liquidity situation to ensure that their firms emerge from the global pandemic in better shape than they entered it and with more predictability in their liquidity cycle.
“One of the steps corporates can take in this regard is to continue to improve their treasury management and reporting capabilities to achieve a real-time view of their financial position,” says Alexandre Maymat, head of global transaction banking and payment services at Societe Generale.
“Banks also need to develop different solutions to assist their corporate clients in areas such as receivables finance and help them achieve a greater understanding of their treasury lifecycle and how this might develop in the future.”
Short-term liquidity optimization is the result of careful planning and analysis of a corporate’s current balance positions, cash-conversion cycle dynamics and risk or investment policies.
“Improvements can be achieved through enhancements to the cash-conversion cycle, greater transparency of account positions and improved liquidity management,” says Philip Fellowes, regional head of global liquidity and cash management Europe at HSBC.
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