Training: Treasury Management and Credit Collections

07-11-2022 | François de Witte | treasuryXL | LinkedIn

treasuryXL expert François de Witte will be giving a treasury training at the House of Training in Luxembourg on 22 November. We would like to highlight this valuable training which is available for only 255 euros!

Register here

Description

In his day-to-day work, the accountant must in particular be able to follow/manage the cash flow and the credit collections of the company. Cash management starts from a different dimension than the accounting perspective, namely that of flows and cash management.

The objective of this training is to give an overview of the treasury dimension, flow and cash management, monitoring of client settlement (Credit Control) and risk management in terms of financing the company. In addition, we will also look at how best to manage the banking reporting, the reconciliation and the bank relationships.

 

Objectives

At the end of the training, the participant will be able to:

  • Identify the cash flow components and their interactions with accounting
  • Understand the basics of a company’s day-to-day cash management
  • Optimize flows in the company
  • Manage customer collections and the development of a “Credit Control”
  • Better understand banking reporting and reconciliation
  • Know the organization of a treasury department and its tools
  • Identify basic tools for hedging risks, managing debt and excess liquidity

Programme

  • Definition of treasury objectives
  • Relations and interactions with other departments including accounting
  • Optimizing the management of financial flows in the company
  • Cash and liquidity management
  • Basic cash management techniques
  • Identification and management of financial risks
  • Financing and banking management
  • Technical tools available to the treasurer

Target Audience

Anyone interested in learning how accounting works and understanding corporate cash flow

Prerequisites

Basic financial and accounting knowledge

Register here

 

 

Francois de Witte

 

François de Witte

 

 

 

Ask the treasuryXL expert #5 What is Factoring in Trade Finance?

03-11-2022 | treasuryXL | Wim Kok | LinkedIn |

treasuryXL is the community platform for everyone with a treasury question or answer! A common question asked by treasurers is what Factoring means in Trade Finance. In today’s article Ask the treasuryXL Expert, Wim Kok defines factoring in trade finance for us.

Factoring in Trade Finance

Question:  “What is Factoring in Trade Finance?”

Answer provided by Wim

What is Factoring in Trade Finance?

Well, there is a pretty good definition included in the Standard Definitions for Techniques of Supply Chain Finance, prepared by the Global Supply Chain Finance Forum and published by the ICC in 2016. It is currently being updated, but the definition is still alright.

There they give the definition of factoring in trade finance as: Factoring is a form of Receivables Purchase, in which sellers of goods and services sell their receivables (represented by outstanding invoices) at a discount to a finance provider (commonly known as the ‘factor’). A key differentiator of Factoring is that typically the finance provider becomes responsible for managing the debtor portfolio and collecting the payment of the underlying receivables.

Would you add anything to this definition? 

There are a number of things I would add to this to explain the terminology and make it more clear:

  • The term “factoring” is sometimes used as an umbrella term for all forms of invoice financing, including confidential invoice discounting. Strictly speaking, “factoring” refers to both debt management and debt purchase.
  • In the UK, factoring is usually communicated to the debtor, as the collection procedures are carried out by the funding provider (the “factor”).
  • Non-public factoring is usually more popular than full factoring. In this case, the customer retains control over the collection of the receivable.
  • In some markets, disclosure is required by law. Some even require the debt to be formally acknowledged before purchase.
  • In the UK, the standard practice is for the factor to purchase all debt – known as “whole turnover” – even if not all debt is eligible for financing. This gives the factor leeway to absorb any dilution or non-payment of individual invoices. Banks also take secondary security in the form of an “all-asset debenture”. This is registered at Companies House and notifies other potential lenders that debts have been transferred.
  • A subtle but important point is that a debt assignment can serve two purposes: it can mean that the debt has been bought or that the debt has been taken as security for a loan.
  • Many Fintechs offer single invoice/selected invoice/selected debtor solutions, but these are inherently riskier than whole turnover solutions. Large bank providers are generally reluctant to follow suit.
  • Factoring can be done with or without recourse. Even arrangements without recourse include provisions allowing the factor to require the customer to buy back the invoice under certain conditions (e.g. contractual dispute).
  • Factoring can possibly be “wrapped” in credit insurance.
  • In the UK, major finance providers tend to operate an “availability model” in factoring rather than funding individual invoices. The “availability” changes in real time as new eligible debts are purchased (within agreed counterparty limits etc) and existing debts are settled, defaulted or become ineligible. The customer can then draw down to “availability” at any time. This is similar to a “borrowing base” approach, albeit with frequent increases and decreases within the day. This model, combined with the “whole turnover” mandate, provides the factor with a secure source of repayment even if some invoices remain unpaid.

I trust this will be helpful and give more insight into this subject.

Wim Kok


Do you also have a question for one of the treasuryXL experts? Feel free to leave your question on our treasuryXL Panel. The panel members are willing to answer your question, free of charge, with no commitment.

How important is it for you that someone has a well-known Treasury degree?

31-10-2022 | treasuryXL | LinkedIn |

The fifth edition in which we discuss the latest poll, is available for your reading. We show how treasurers voted to express their opinions on a current issue, and several of our treasury experts will talk about their perspectives.

We thank our experts Konstantin Khorev,  Arnoud Doornbos and François De Witte for sharing their valuable views on this topic in this edition.

How important is it for you that someone has a well-known Treasury degree?

There are plenty of education and training courses in treasury, with the aim of obtaining treasury certificates. We wanted to explore how important you think this is, in the job market or for other things. There was a very good participation in the poll, resulting in a record 113 votes. Thank you everyone for actively participating, and join us in voting for the poll that is currently live and let’s try break the record votes right away!

Question: How important is it for you that someone has a well-known Treasury degree? On the job market or for other things?

How do treasures think of a treasury degree?

We see a considerable spread of votes. A large proportion of treasurers value expertise more than a degree. On the other hand, a large proportion considers a treasury degree minimally of high importance. Some of our treasuryXL experts from different backgrounds explained their views on the subject.

View of treasuryXL experts

Konstantin Khorev

Konstantin voted for the option that a treasury degree is a guarantee of quality.

” Specific, treasury-focused education certainly makes sense.”

From the perspective of a recruitment manager who has conducted a number of interviews, I find that a standard academic programme does not focus enough on the topics relevant to the treasury function.

For example, I note that too many candidates for treasury positions find it difficult to understand or don’t know FX forward pricing (relationship between interest rate differential, spot and forward pricing), or don’t understand the difference/relationship between net income and cash flows, etc.

And, of course, these are only general topics; other topics – like cash pooling or hedge accounting are just not part of the regular curriculum. Therefore, specific, treasury-focused education certainly makes sense.

Arnoud Doornbos

Arnoud voted for the option that a treasury degree is just one of the key aspects.

” There are also elements that you can never learn from a book”

A treasury degree is a great start to a career in treasury. But after having interviewed many candidates in my life, I am also convinced that practice is also a very good learning opportunity. There are also elements that you can never learn from a book. You must have done that. But a treasury degree is a nice theoretical framework to start with.

In treasury you have to think in terms of cash flows and risks. In addition, you still need some understanding of financing, how to price it in relation to the risk that the bank runs on your company.

I don’t have a treasury degree myself, but I am completely self-made man. After 25 years in dealing rooms of banks and then 9 years as a treasury consultant, I think I have seen all facets of the profession.

François de Witte

François voted for the option that a treasury degree is a guarantee of quality.

” It is key to ensure that both the candidates and the current treasury staff keep their treasury knowledge updated”

Within Finance, Treasury is a fast-moving activity, which requires in addition to the soft skills a lot of technical skills and competencies. We are in the war for talent, and we experience more and more staff rotation. Hence it is key to ensure that both the candidates and the current treasury staff keep their treasury knowledge updated.

Several programs have been developed, the most well known being the ACT Certificate in Treasury Fundamentals. In the Netherlands NIVE also organizes the QCM (Qualified Cash manager) and QT (Qualified Treasurer) training. In Luxembourg, ATEL organizes with the House of Training the Certificate in International Treasury Management and Corporate Finance, with a Fundamentals version and an Advanced version.

Some treasury associations partnering with universities to provide treasury certification. In France, the AFTE has teamed up with the university of Paris Sorbonne, the university of Rennes and the University of Lille to develop a full master program in Treasury Management.

We also have in the Netherlands the Vrije Universiteit Amsterdam who organizes the postgraduate Executive Treasury Management & Corporate Finance program combining two finance disciplines which largely overlap and are inextricably connected: Treasury Management and Corporate Finance. It has now been running for more than 20 years.

Beside this we have a lot of other treasury trainings organized by organizations such as Van Groningen, Finsiders Academy, Orchard Finance, etc. However, they do not offer a certification.

In an ever more sophisticating environment, and in view of the increased regulations, it is for me key to look at certified trainings to build a solid background in a Treasury Management field. It enables to meet other talented treasurers and teachers. In addition, thanks to the certification, based upon an examination and/or end paper, you can get a additional quality label, which can be very useful in your career.

In this respect, I wish to share my personal experience in a completely different area. I am currently looking for Board Mandates and realized that there also a certification can be useful. Hence I have started the Guberna programme to become a Guberna Certified Director.

In the event that due to circumstances, you cannot follow certified trainings, you can also get a certification thanks to the Treasurer Test developed by treasuryXL.

Brush up on your treasury knowledge? Get our eBook: What is Treasury?

27-10-2022 | treasuryXL | LinkedIn |

How can you fast brush up on your treasury expertise, Treasurers, CFOs, Cash Managers, Controllers, and other Finance Addicts? Or how would you describe “What Treasury is” to family and friends? Well, there is an easy solution for it. Download our free eBook here: What is Treasury?

This eBook compiled by treasury describers all aspects of the treasury function. This comprehensive book covers relevant topics such as Treasury, Corporate Finance, Cash Management, Risk Management, Working Capital Management.

This eBook was prepared by treasuryXL based on the most useful best practices offered by Treasury professionals throughout the previous years. We compiled the most crucial information for you and wrote clear, concise articles about the key topics in the World of Treasury.

We took a deeper dive into each of the above-mentioned treasury functions and highlight:

  • The purpose of each named Treasury function (What is?)
  • What specialists do
  • Examples of Activities
  • Summary of Frequently Asked Questions and answers
  • Conclusion

How to receive the eBook ‘What is Treasury’ for Free?

We simply giveaway two presents for you! By signing up for our newsletter you will automatically receive the following in your inbox:

  1. On Fridays, our Coffee Break weekly newsletter will land in your inbox. In this weekly newsletter, we will highlight the whole week full of the latest treasury news within our community.
  2. The 41 pages eBook, What is Treasury?
Subscribe and Download

 

Subscribe, Join, Download and Relax.

Welcome to our community and have fun reading!

 

 

Kendra Keydeniers

Director, Community & Partners at treasuryXL

 

 

RECORDING | Live Session: My Treasury Career Development

17-10-2022 | treasuryXL |  Treasurer Search | LinkedIn |


The recording of the Live Session: My Treasury Career Development & How the Register Treasurer education contributed, is Now Available for You.

Duration: 53 minutes

Watch Recording

Make sure to use this Passcode: %Gp@NT=5

 

If you are thinking about how you can shape your treasury career and need some inspiration, this recording is a must watch.  There are plenty of education opportunities, but in what education will you invest and why?

In this webinar two graduated Register Treasurers will share their stories:

  • 🌟 Jurgen Wessel RT is interim Head of Treasury of SHV and has experience in a variety of international companies at HQ and treasury hub level.
  • 🌟 Frank van der Hoeven RT van der Hoeven used to be a banker, moved to the corporate side and currently is Treasury Manager at IMCD, well-known for many successful acquisition and integration processes.

They will tell you about how they moved between various stations and will pay special attention to the added value of their post academic degree: The Treasury Management and Corporate Finance programme (RT Programme) at the Vrije Universiteit Amsterdam (VU Amsterdam).

 

Watch Recording

Make sure to use this Passcode: %Gp@NT=5

 

Enjoy!

Best regards,

 

 

Kendra Keydeniers

Director, Community & Partners

 

 

 

What could happen if the Treasury sector were “metaversed”​?

04-10-2022 | treasuryXL | LinkedIn |

We present for you already the 4th edition in which we discuss the latest poll results. We’ll demonstrate how treasurers voted to express their viewpoints on a current matter, and a treasury specialist will discuss his view.

We have invited  Ernie Humphrey to share their views on the current topic.

What could happen if the Treasury sector were “metaversed”​?

Corporate treasury in the metaverse; is that realistic in the near future? We wanted to know if this idea was in play among Treasurers. The poll did not get the highest number of responses with only 26 votes. Still, thanks to everyone who voted!

 

What do treasurers think?

Despite the relative lower number of votes, the votings gives an interesting picture. Half say they do not see Treasury happening in the metaverse, yet over a quarter say they are enthusiastic about the idea. One treasuryXL expert Ernie provided his opinion of the concept of Corporate Treasury in the Metaverse.

View of treasuryXL expert

Ernie Humphrey

Ernie voted for the option that he does not see this happening.

 

” Will I try to get treasury professionals to engage “in that world” as it makes sense? Absolutely!! “

 

Metaverse is just a “buzz phrase”. No one currently knows what it is.

Treasury professionals are notoriously slow to adopt new technology and concepts.

Yes, we are finally seeing some traction with RPA and AI, but what is the actual adoption rate?

I gave the first full virtual conference for Treasury professionals back in 2020 and it was clear that even though we were in the middle of COVID, treasury professionals were not buying a virtual experience that could be the same (or better) that a live event.

If they cannot accept a virtual conference, how should we expect them to do things like buy “digital assets”with corporate assets?

As another example, look at the use of cheques in the US, still nearly 50% of B2B payments. Enough said, the Metaverse and treasury are a long way off if ever.

Will I try to get treasury professionals to engage “in that world” as it makes sense? Absolutely!!

Invitation Open Evening: Fundamentals of Treasury Management | 12 October | Vrije Universiteit Amsterdam

03-10-2022 | treasuryXL |  VU Amsterdam | LinkedIn |

 

Are you up for the next step in your career? Would you like to further develop your knowledge, skills and professional view of this fast-changing world?

 


The postgraduate programme Treasury Management & Corporate Finance of the Vrije Universiteit Amsterdam offers a new course: Fundamentals of Treasury Management.

Join the Online Open Evening on Wednesday, 12 October, 2022 19:00 – 20:00.

This course enables you to review the key financial and organisational issues in Corporate Treasury with attention to current developments in legislation and technology.

Views/opinions of lecturers and discussion with participants may trigger new insights and ideas in your professional practice. This course is meant for treasury professionals willing to test, build and train their professional knowledge base in a more structural way.

Fundamentals of Treasury Management at a glance:

  • Duration: 6 weeks, part-time
  • Start: November 2022
  • Lectures: 1 x onboarding session and 8 x online on Wednesday afternoons & evenings
  • Fee: €  3.250 (for DACT members € 2.750)
  • PE points: 26 PE points

View all admission requirements, costs & lectures schedule

 

Sign up for the Online Open Evening


This is what graduates say about the course

 

Ahmed Fathi Ahmed – EMEA Sales Advisory Cash Management – BNP Paribas: ‘

The certification Fundamentals of Treasury Management is an excellent way to build a solid background in a Treasury Management field. Indeed, it allows me to develop a very finest and an efficient toolbox with regards to International Cash Management, Supply chain and Trade Finance. That has helped me to better serve the large corporations that I manage in my company. Furthermore, I was thrilled to meet talented treasurers and professors which expanded my corporate network.’

 

Partners in delivering this programme are KPMG, BNP Paribas and DACT, the Dutch association of corporate treasurers.

 

 

We are looking forward to welcoming you!

Best regards,

 

 

 

Herbert Rijken
Programme director

 

 

 

 

International Treasury Management and Corporate Finance

22-09-2022 | François de Witte | treasuryXL | LinkedIn

The following event, which features our Expert François de Witte, is something we’d like to call your attention to. To learn more about corporate finance and international treasury management, register below.

Register Here

Description

 

The treasurer is the custodian of the company’s daily liquidity. He manages, anticipates and secures cash flows by ensuring that financial needs are covered. This cursus will give the ability to assist directly and practically the treasurer of large corporates or to take over the treasury responsibilities in a SME. The different modules will allow you to acquire the fundamentals of the different areas of the “Corporate Treasurer” profession.

 

Module 0  – Introduction to Treasury Management

Speaker: Benjamin Defays / Treasury Manager

 

  • Bank account opening/closing

  • KYC

  • Payments and bank connectivity

  • Liquidity structures

  • Cash forecast

  • Importance of working capital

  • Factoring/reverse factoring

  • Main financial measures

  • Economic thinking

  • Risk Measures

  • Hedging

  • Fraud risk

  • Credit risk

  • General context

  • Bank guarantees

  • Letters of credit

Module 1 : Payments, Cash Management and Banking Relations – Fundamentals

Speaker François De Witte / Consultant  

 

  • Payment and interbank clearing and settlement methods.

  • Payments instruments, processes and tools

  • Electronic banking channels

  • Working capital, cash and liquidity management – basic concepts

  • Day to day cash management

  • Organisation of the cash management and tooling

  • Financing the company

  • Basic insights in managing banking relationships

Module 2 : Risk Management Applied to Treasury – Fundamentals

Speaker: François Masquelier / Group Treasurer

 

  • FX, Interests
  • Counter-parties
  • Others (Reputation, etc…)
  • Objectives of hedge accounting
  • Required documentation and formalization of hedge accounting relationships
  • Different types of hedges (Fair Value, Cash Flow, Net Investment)
  • Booking adjustments of different hedge types
  • Typical examples of different hedge types

Module 3 : Trade Finance Applied to Treasury – Fundamentals

Speaker: Benjamin Defays / Treasury Manager

 

  • General contact, cultural aspects
  • Why trade finance in treasury
  • Bank Guarantees, Burgschafts, Surety bonds, Letters of credit, Cash against documents
  • Alternative security instruments
  • Disruptive technologies

Module 4 : Credit and Collection Applied to Treasury

Speaker: Benjamin Defays / Treasury Manager

 

  • Introduction to credit risk management
  • Concepts & Practices/Types of credit risks
  • Understanding financial statements and ratios
  • Credit Scoring/Ratings – S&P, Bloomberg models
  • Collection:
    • Collecting overdue receivables – setting priorities
    • Strategies dealing with overdue invoices
    • Debt collection services development

 

Module 5 : Cyber-fraud: what you need to know to manage this ever increasing risk

Speaker: Thierry Hamon / Cash management & Cybersecurity expert 

  • Getting an overview of the different cyber-attacks techniques currently used
  • Understand the possible consequences of cyber-fraud and what needs to be protected
  • Learn 50 ways to protect
  • Special focus on IT backup, fraudulent emails & disaster recovery plan for treasury
  • Co-construction of counter-measure list for all main cyber-attacks
  • Personal action plan definition for each participant

 

Public cible

Anyone who wants to acquire basic knowledge of corporate treasury and put this knowledge into practice.

Prerequisites
  • Basic background in finance or accounting
  • For the advanced Excel workshop, a preliminary (good) knowledge in Excel is required.

Conditions

Training material

Course material will be provided at the beginning of the course.

Location
Chambre de Commerce Luxembourg

7, rue Alcide de Gasperi
L-1615 Luxembourg
Luxembourg

 

Register Here

 

 

Francois de Witte

 

François de Witte

 

 

 

 

 

 

New Treasury learning platform at Finsiders-Academy (Dutch)

15-09-2022 | François de Witte | treasuryXL | LinkedIn

Wij vragen de aandacht voor de volgende opleidingen, waarbij onze Expert François de Witte betrokken is. Namelijk een nieuw intitiatief van Finsiders-Academy om een Treasury opleiding op te zetten, en goed nieuws want de eerste modules zijn klaar!

Wat is Finsiders?

Finsiders is een financieel projectconsultancy bureau dat organisaties ondersteunt in hun tijdelijke nood naar ondersteuning, op vlak van controlling, accountancy, treasury en transformatie. We leveren operationele ondersteuning maar denken ook strategisch mee met de organisatie.  Daarnaast begeleiden we onze consultants uitgebreid met persoonlijke coaching en begeleiding, onder andere via het online leerplatform van de Finsiders Academy. Daar kunnen ze tijds- en plaatsonafhankelijk zichzelf verder ontplooien en bijleren, alsook zich voorbereiden op een nieuw project.

Welke leer modules zijn momenteel beschikbaar?

Op dit moment zijn de volgende modules klaar:

  1. Working Capital Management: https://www.finsiders.be/nl/opleidingen/working-capital-management
  2. Cash Forecasting and Cash & Liquidity Management: https://www.finsiders.be/nl/opleidingen/cash-forecasting-liquidity-management
  3. Financing & Bank Relations: https://www.finsiders.be/nl/opleidingen/financing-your-company.
  4. Globaal packet Cash Management: https://www.finsiders.be/nl/opleidingen/cash-management-opleidingspakket.
  5. Optimizing the Financial Flows: https://www.finsiders.be/nl/opleidingen/optimizing-financial-flows.

Voor wie zijn deze opleidingen extra relevant?

De opleidingen zijn relevant voor finance professionals die een dieper inzicht willen krijgen in het cash en liquidity management.

Wat moeten geïntresseerden nu doen?

Geïnteresseerden kunnen via de website inschrijven voor een e-learning naar keuze. Ze hebben 1 jaar toegang tot het online leerplatform en kunnen op eigen tempo en volgens hun eigen agenda tijdsonafhankelijk aan de slag.

Vind hier alle opleidingen

 

 

Francois de Witte

 

François de Witte

 

 

 

 

 

 

Quickly refresh your treasury knowledge? Download our eBook: What is Treasury?

08-09-2022 | treasuryXL | LinkedIn |

Hello Treasurers, CFO’s, Cash Managers, Controllers and other Finance addicts, how do you quickly refresh your treasury knowledge? Or how do you explain ‘What Treasury is’ to family and friends? Well, there is a simple solution for it. Download our eBook: What is Treasury? 

This eBook compiled by treasury describers all aspects of the treasury function. This comprehensive book covers relevant topics such as Treasury, Corporate Finance, Cash Management, Risk Management, Working Capital Management.

This eBook was prepared by treasuryXL based on the most useful best practices offered by Treasury professionals throughout the previous years. We compiled the most crucial information for you and wrote clear, concise articles about the key topics in the World of Treasury.

We took a deeper dive into each of the above-mentioned treasury functions and highlight:

  • The purpose of each named Treasury function (What is?)
  • What specialists do
  • Examples of Activities
  • Summary of Frequently Asked Questions and answers
  • Conclusion

How to receive the eBook ‘What is Treasury’ for Free?

We simply giveaway two presents for you! By signing up for our newsletter you will automatically receive the following in your inbox:

  1. On Fridays, our Coffee Break weekly newsletter will land in your inbox. In this weekly newsletter, we will highlight the whole week full of the latest treasury news within our community.
  2. The 41 pages eBook, What is Treasury?
Subscribe and Download

 

Subscribe, Join, Download and Relax.

Welcome to our community and have fun reading!

 

 

Kendra Keydeniers

Director, Community & Partners at treasuryXL