by Guillaume Flies, Head of Collections, BNP Paribas
The workshop was moderated by Graham Buck, formerly managing editor of treasury website gtnews, with a panel comprising Guillaume Flies, head of collections, virtual accounts, BNP Paribas Cash Management, Aliette Leleux, finance and risk managing director, Accenture and Marek Chruściel, head of treasury at Play, a Polish-based telecoms group.
Centralisation and COBO
A collection factory acts as a centralised processing centre for accounts receivable (A/R), usually including activities such as account reporting, reconciliation, account posting, credit management and collections administration. The advantages of centralising financial functions are well-documented, including: cost savings through economies of scale and better use of automated technology; standardised processes and controls, and consistent reporting and metrics. Collections on behalf of (COBO) models (i.e., the ability for a single entity to collect cash ‘on behalf of’ group companies, often through a single account per currency) develop these benefits further, with streamlined processes and bank communications, fewer bank relationships, simplified liquidity structures and lower bank charges.