Liquidity & Cash Management

Supply Chain Financing aims to

• Extend days payable and reduce days receivable

• Increase the cash conversion cycle

• Consolidate fragmented liquidity pools

• Enhance invoice processing and reconciliation

Working Capital Funding equals

• Days of inventory outstanding minus days of payables outstanding

• Current assets minus current liabilities

• Current liabilities minus days of payables outstanding

• Days of inventory outstanding minus plus days of sales outstanding minus days of payables outstanding

In receivables financing, the bank

• Enhances invoice processing and reconciliation

• Lends money unsecured directly to a client

• Finances client credit to customers unsecured

• Bases financing on invoices representing customer obligations

Physical cash sweeping and pooling aims to

• Extend days payable and reduce days receivable

• Increase the cash conversion cycle

• Consolidate fragmented liquidity pools

• Enhance invoice processing and reconciliation

What is factoring?

• Sale of invoice to a factor

• Borrowings from a factor

• Presenting an invoice to get financing

• Buying an invoice from factor

Notional pooling is a service whereby the bank

• charges fees on overdrawn balances while paying interest on positive balances

• transfers positive balances to overdrawn accounts

• provides facilities in overdrawn locations which are netted off against positive balances