FTF Financial Group Can Help Optimize a Company’s Working Capital Through its Supply Chain Finance Program
Working capital has been promoted to a higher focus these days. As a former Treasury manager, my team and I would funnel through the numbers to ensure that we had the cash flow to continue each day’s operations, as well as forecast to ensure we knew where any liquidity obstacles resided. Looking back, I wish we had the opportunity to utilize Supply Chain Finance (SCF). SCF would have made our working capital management efforts so much easier and more efficient!
Today, working capital management is not just a key treasury function. Working capital is the one area senior management and its staff is reviewing- crossing treasury, sales, operations and accounting lines.
With today’s automation, digital systems and data analytics, the business environment needs to assist with improving the efficiency of working capital management. I have written about the technology disruption in previous posts. Enhanced technology is here for the duration. Companies must embrace the change, implement it to remain competitive and develop the best method to fund. The answer is Supply Chain Finance! SCF has been around for many years at the large company level. Small medium enterprises (SMEs) have not had the opportunity to take advantage of SCF. Today they most certainly do.
FTF Trade’s QuickPay SCF program can assist a client to efficiently optimize its working capital. SCF is a simple concept: Extend the client’s accounts payable terms at virtually no cost and pay those suppliers’ receivables who want to be paid early for a small discount. As I have said, “It’s a win-win solution.”
The concept is worth repeating. SCF has two main components:
1) A Buyer extends accounts payable terms, and
2) the Supplier has the option to get their invoices paid early.
What could be more simple for both parties’ working capital optimization? Leverage FTF Trade’s QuickPay today to assist with your working capital management.
Melissa Huckins is the founder of FTF Financial Group, an independently owned and operated supply chain financing firm. Melissa is focused on helping small to mid-sized business-to-business companies secure funding that may not otherwise be available. By giving them access to working capital needed to grow, FTF Finance is helping shape the business community.