by Adeline de Metz, Head of Supply Chain Finance Solutions, Global Transaction Banking, UniCredit
Working capital optimisation is a priority for companies of all sizes, but the motivation of these companies can differ quite significantly. For smaller companies that lack ready access to liquidity, techniques such as factoring and receivables financing provide valuable sources of liquidity; however, in addition, supply chain financing solutions on both sides of the balance sheet are becoming an increasingly important part of larger corporations’ working capital strategy.
A customer-centred strategy
We work with a wide spectrum of clients, across geographies, industries and sizes of company, to understand their working capital needs and design solutions to meet their specific needs. Although smaller and lower-rated companies are often motivated by liquidity considerations, these are rarely as significant for larger corporations, given the high level of market liquidity. Amongst larger businesses, therefore, we see three broad drivers: