Only 5 days left until the International Treasury Management Virtual Week 2020

| 16-09-2020 | Eurofinance | treasuryXL |

Don’t miss the Treasury Event of the Year! If you haven’t signed up already, here is a reminder to join this great virtual event with incredible speakers and live sessions.

Virtual Event

Now more than ever, we need to learn and engage with other treasury professionals around the world, so that we can navigate and overcome the unprecedented challenges we are facing.

As the current situation unfolds, the role of the corporate treasurer is evolving and becoming more strategic than ever before. The complexities and function of treasury within the business is changing even more rapidly. The question is: What does the future of treasury look like and how will this affect my team? And where can I turn for world-class advice on building resiliency, supporting the business and addressing future challenges?

Look no further than EuroFinance’s International Treasury Management Virtual Week taking place 21-25 September. It will see world-leading treasurers and economists come together to address these issues, deliver big picture global insights and share the essential granular knowledge you and your team need for the path ahead. In the spotlight will be the latest on cash flow forecasting, supply chain finance, tech, liquidity and FX and payments plus much more.

Speakers and Live Sessions

The line-up of speakers is impressive with the likes of Shell, Alibaba Group, HP Inc., eBay, Finnair, Microsoft, Intel Corporation, Schlumberger, Booking Holdings Inc. and Rio Tinto holding centre stage in one of the 75+ live sessions. But don’t worry if you miss a session, they will be available on-demand for you to watch at a time that suits you.

The custom-built virtual conference platform will bring the experience of a live event to life in a virtual world. It offers plenty of opportunities to network and learn from your global peers, plus a smart calendar to build your schedule.

Free Registration

The great news is, the 2020 event comes without a price tag! It is free for corporate treasurers. So, you can get all the world-class expert knowledge and insights you expect from the leading treasury event without the costs of registration, flights, accommodation or even expenses.

What are you waiting for? Set your treasury team up to thrive not just to survive.

Register for free today!

 

Partner Interview Series | XE the world’s trusted currency authority

15-09-2020 | treasuryXL | XE |

XE provides a comprehensive range of currency services and products, including their Currency Converter, Market Analysis, Currency Data API and quick, easy, secure Money Transfers for individuals and businesses. They leverage technology to deliver these services through their website, mobile apps and over the phone.

We will take a deeper dive into the market, XE businesses and the future of FX.

AN INTRODUCTION TO

Wybe Schutte is head of Business Development Europe at XE.com. Wybe’s career has always centered around international business development and managing relationships. Within XE.com both play an important part as globally we XE is the trusted partner of many business in helping them manage & mitigate the risk that is associated with dealing with multiple currencies, be this through simple rate regulation or looking at high level currency risk management & hedging solutions.

We asked him 10 questions. Let’s go!

 

INTERVIEW

1.Can you tell something about XE and its mission?

At Xe, we live currencies. Most people know Xe from the currency converter, however we also provide international money transfer services for business for over 25 years.  Xe’s Business Solutions supports company’s that have an exposure to foreign currency, supporting them to safeguard profit margins and improve cashflow through quantifying the FX risk they face and implementing strategies to mitigate it. So that our clients can focus on their core business and do not have to worry about their FX.

2.What kind of FX risk types exists and how does XE deal with it?

We look within each business to see where the currency risks are, and whether these can be offset. For example, any sales made in Euros could be offset against Euro costs. If there is still an exposure this is where products such as Forward Contracts can be considered in order to provide protection against the risk. Currency risk can be divided into three types: Transactional Risk, when a business deals in a country that differs to their base currency; Transnational Risk, when a business has an asset or liability overseas on their balance sheet, and Economic Risk where a movement in the exchange rate can give a business a competitive advantage when competing for a particular market.

3.How can you measure the different types of FX risk?

FX Risk can either have a negative or positive impact on a business’ bottom line. If you look back over the last 10 years you can understand what the potential impact could be in the most extreme, least extreme and average scenarios over your given timeline.

This can be done by looking at the high & low points of the market and a business’ FX exposure. This step helps companies to understand what the impact of the net exposure can have on the bottom line.

4.What are the most common critical FX problems that businesses have?

Businesses that have a transactional exposure to the currency markets can differentiate between committed and forecasted exposures. A committed exposure is when the price for a good or service in a foreign currency is known and contracted. Therefore, any movement in exchange rate has a direct impact on their profit or cost unless hedged. A forecasted exposure is when a business looks to the period beyond the committed period to see what their requirements may be. Confidence levels into forecasted periods can vary largely and it is normally the case that the further out a business forecasts, the lower the confidence levels.

5. How can businesses protect their bottom line against the currency markets?

There are a number of key stages that a business can look to follow in order to mitigate FX volatility. Firstly, Identify the type of risk, quantify the risk elements, and then look to build a strategy and agree the implementation process. These stages will allow you to decide the products that are most suitable, so you can then move to market timing and execution. Lastly, you should look to review, revise and adjust your approach on a regular basis. It is important to remember that it is not about market speculation but about mitigating your risk.

6.What is, in your perception, the biggest benefit of a working Foreign Exchange strategy?

Given the ever-uncertain world in which we currently live in, finance departments and treasury centres could be looking to build a strategy to deal with currency fluctuations, which over time could have a considerable impact on your company’s bottom line. A structured approach to foreign exchange risk can enable your business to make strategic planning decisions, rather than attempting to respond to day-to-day developments in the market.

7. Do you experience differences in FX before COVID19 and the time we live in now? What are the differences?

There has been significant movements in the currency markets during the Covid19 period and there are still many factors that influence the daily rates. During these uncertain times our clients are looking for certainty and stability. And although price is always important, other key factors like security and credibility became more important. Naturally each of our clients has been impacted very differently and we have worked with them to provide the solutions and flexibility they needed. We have welcomed many new clients from new geographies? as they were growing, and we supported existing clients that were growing or adapting their business models to suit the changing market.

8.The market is always changing, how does XE stay top of mind of the latest developments in the currency world?

We work closely with our clients to continuously understand their needs and adjust accordingly. Our expert Dealers keep a close eye out on the market. Understanding the movements, resistance levels, and key economic & political updates that can influence the market so that our clients do not have to worry about that. Xe also works closely with our sister companies and parent company Euronet Worldwide.

9.How does the future of FX look like in your perspective?

The near future could be set to weather extraordinary levels of balance sheet expansion and recession, potentially leading to a longer stimulative/expansionary monetary policy which could in turn depress currency rates of the countries that bear them. Near to medium term impacts of this could include a lack of major economic expansion as capital returns are often negative when factoring inflation. This may mean that we see a re-composition of FX strength toward commodity-based currencies (CAD/AUD/NZD) and alternative safe havens (CHF). However, we could see this shift in the longer term as public debt, in particular, becomes more tenable and attractive at such low interest rates and could invite broader investment for countries and to a degree private industry.

We have witnessed ample FX market volatility from an increased reliance on a more narrow data core. Inflation and interest rates and also public debt and balance sheet expansion narratives are having the most impact on rate movements. With this in mind; where much of the corrective forces required are formed around policies related to these key issues, it appears that volatility could behere to stay for at least the coming 6-12 months and beyond.

10.How does the future of FX look like in your perspective?

Supporting a scale-up with their complex FX requirements and enable them to grow their business in a short period of time by eliminating the FX risk and provide significant costs savings along the way.

 

About XE

At XE, they live currencies. XE provides a comprehensive range of currency services and products, including their Currency Converter, Market Analysis, Currency Data API and quick, easy, secure Money Transfers for individuals and businesses. They leverage technology to deliver these services through their website, mobile apps and over the phone.

Last year, XE helped nearly 300 million people access information about the currencies that matter to them and over 350,000 people used XE to send money overseas. Thousands of businesses relied on XE for information about the currency markets, advice on managing their foreign exchange risk or trusted XE with their business-critical international payments.

International Payments & FX Risk management for business

XE Business Solutions can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. We provide a comprehensive range of currency services and products to help you access competitive rates with greater control.

At XE, they share the belief that behind every currency exchange, query or transaction is a person or business trying to accomplish something important, so XE works together to develop new and better currency services that put their customers first.

XE is proud to be part of Euronet Worldwide (Nasdaq: EEFT), a global leader in processing secure electronic financial transactions. XE is part of the Money Transfer Division of Euronet and is the unification of HiFX and XE.com.

Visit XE.com

Read XE blogs

The Treasurer’s Toolkit: Unpacking the DNA of a successful treasurer in 2025

8-9-2020 | treasuryXL | Refinitiv |

How did treasurers become the guardians of business risk?

In the aftermath of the financial crisis, corporate treasury teams were thrust into the spotlight when businesses prioritised cashflow as banks’ appetites to lend waned. Since 2008, the role of the corporate treasurer has evolved from that of a diligent back-office function, to increasingly become more of a strategic advisor to the board. Today’s corporate treasurers have a much broader remit and the subsequent onslaught of regulations such as Basel III, Dodd Frank, MiFID II and the International Accounting Standards have ensured that the treasurer now plays a critical role in ensuring the survival, and success, of businesses.

To sustain this advisory relationship with senior stakeholders and further develop as a strategic lead in the global competitive business landscape, corporate treasurers must understand the vital skills and relevant experiences that will not only help propel their careers but differentiate them from others in the market.

78 per cent of respondents agree that treasurers across the world are now expected to do more with less

In this ground-breaking research report The Treasurer’s Toolkit, Refinitiv has identified key trends in how corporate demands have shaped the skillsets, desired experience and typical profiles of the modern corporate treasurer. Our research incorporated the views of 250 CFOs, heads of finance and recruitment professionals, across five continents in businesses varying in size, from fewer than 100 employees to more than 5,000. In this report we take a deeper dive into the research, to unpack the DNA of the successful treasurer, now and in the future.

Partner Interview Series | A deeper dive with Paul Simpson from Kyriba

01-09-2020 | treasuryXL | Kyriba |

In the upcoming weeks, you will get inspired by the treasuryXL partner interviews. Each interview will be different, the only thing we can recommend: Learn, Discover and Enjoy!

The first interview to start with is Kyriba where we will take a deeper dive into their recent hosted webinar about Mitigating Fraud With a Corporate Payment Hub.

AN INTRODUCTION TO

 

Paul Simpson is Strategic Payments Director at Kyriba who also was one of the presenters during the webinar in July.

We asked him 9 questions and 3 bonus questions. Let’s go!


INTERVIEW

1. Can you tell us about the Corporate Payment Hub and your specific role?

My role is to promote the Kyriba Payment Hub, to make customers and prospects aware that we also have a powerful payment module. Often people think of Kyriba for TMS, but we have far more to offer, for example an anti-fraud solution in addition to payments. As part of my role at Kyriba, I look at the constantly changing payment landscape to inform treasurers and finance teams of these changes, whether that’s regulatory or technological. The Kyriba Payments Hub detangles what I call the “ERP payment spaghetti”, streamlines global bank connectivity and format transformation, whilst providing companies with real-time fraud detection. This can also accelerate ERP cloud migration projects.

2. What is the core issue the Corporate Payment Hub aims to address and how does it differentiate it from the other players in the market?

Essentially a payment hub gives our clients a single, consolidated point of access across bank accounts, giving the ability to set up payments, define different payment types and provide notification of pending approvals. Kyriba provides this visibility by consolidating payment streams from different systems – ERPs, finance, treasury, legal, capital markets and decentralised teams, thus transforming dis-aggregated processes into a single source of record for all outgoing payments, all done with built-in fraud detection. We also, uniquely, support and maintain a “bank” of over 45,000 bank formats in-house via our bank formats team. This allows the payment hub to transform payment data into bank-specific file formats and connects directly with global banks via multiple protocols, including host-to-host, SWIFT and regional networks. Other providers build each bank format for each customer at a high cost and development time. The Kyriba payment hub is designed to work across different ERP solutions, whereas ERP systems will not work across other instances.

3. Can each ERP work with the Corporate Payment Hub also when you work with multiple ERP’s located in different countries?

Absolutely. The Kyriba payment hub is designed to work with multiple ERP systems across different countries.

4. What are the most common fraud scams that businesses are dealing with?

Fraudsters are trying to use the current crisis to their advantage. With people working from home, for example, they may attempt to ask finance to make payment to a new bank account – knowing the sign off process is not as robust as it was when teams were all together in the office.

5. What’s the difference in Fraud Scams before COVID19 and the time we live in now?

We have research that shows the number of fraud scam attempts is up by nearly a 1,000 times since Coronavirus. The finance sign-off process for making payments are defragmented as people are working from home. This is where the Kyriba payment hub can bring standardised workflows, sign-off and approvals together to help eliminate fraud

6. What critical elements of Fraud are often overlooked by businesses?

Businesses fail to use AI and machine learning in addition to rule-based technology and processes to reduce fraud. This is a key component of the Kyriba Payment Hub

7. What has been the best experience of one of your customers working with the Corporate Payment Hub?

We are able to cut the time and cost of a customer migrating their ERP solutions to the cloud, as we can handle all the payment connectivity and formats etc “out the box”, thus saving the company many 100,000s of Euros, and 6 months or more in time, whilst also providing and standardising work flow sign off processes etc.

8. What is, in your perception, the biggest benefit of a working with the Corporate Payment Hub?

True, real-time visibility of all payments, from all systems, in one place with enhanced fraud protection and built in work flow.

9. What is your best fraud prevention advice for businesses?

Prevention is always better than cure! I always preach this. Always use combined workflow and AI / Machine learning technology together – the best of both worlds.

BONUS QUESTIONS

Have you ever experienced a fraud scam yourself? If yes, how did it impact you?

I have never experienced a fraud scam myself, the protection I had in place alerted me to a potential scam and I took action.

How are you defending yourself against payments fraud?

Every payment has to be checked via a rule and AI/Machine Learning process.

How does the future of fraud prevention look like in your perspective?

Fraudsters are getting more sophisticated, with only 6% of Corporates using machine learning/AI, they need to use the latest technology or be left behind and suffer fraud.

About Kyriba

Kyriba is the global leader in cloud treasury and finance solutions, delivering mission-critical capabilities for cash and risk management, payments and working capital solutions.

Kyriba empowers CFOs and their teams to transform how they activate liquidity as a dynamic, real-time vehicle for growth and value creation, while also protecting against financial risk. Kyriba’s pioneering Active Liquidity Network connects internal applications for treasury, risk, payments and working capital, with vital external sources such as banks, ERPs, trading platforms, and market data providers. Based on a secure, highly scalable SaaS platform that leverages artificial and business intelligence, Kyriba enables thousands of companies worldwide to maximize growth opportunities, protect against loss from fraud and financial risk, and reduce costs through advanced automation. Kyriba is headquartered in San Diego, with offices in New York, Paris, London, Frankfurt, Tokyo, Dubai, Singapore, Shanghai and other major locations.

Visit Kyriba

Large platforms mainly invest in stones: social value decreases

31-08-2020 | Lex van Teeffelen | treasuryXL

Due to the corona crisis, loan volume shrank by 37% for corporate loans with crowdfunding platforms. Unique, because since the foundation of crowdfunding platforms there has only been growth. The first half of 2020 was so bad that a number of platforms made use of the NOW scheme. Yet there is also good news. A number of platforms are growing rapidly. Five platforms have also been admitted to the SME Corona Guarantee Scheme. What are the main developments? And where are the largest platforms?

(Blog in Dutch)

Het goede nieuws

Het gaat een aantal platforms voor de wind. NLInvesteert neemt de koppositie over als marktleider in het eerste halfjaar 2020. Onderscheidend door de sterke risicobeoordeling en de lage default. Maar ook SameninGeld voor particulier vastgoedfinanciering en LenderSpender voor consumentenleningen groeien door.

Eindelijk toegang tot overheidsgaranties

Na veel lobbywerk in Den Haag is de kogel door de kerk. Ook crowdfundingplatforms kunnen overbruggingskredieten met staatsgaranties aanbieden. Het gaat om BMKB-Corona regeling tot 1,5 miljoen euro met een aflosvrije periode tot 18 maanden en een maximale looptijd van 4 jaar. Een aantal platforms heeft concessies moeten doen. Naast de crowd dienen ook professionele/grote investeerders mee te doen. De website van het RVO is wat traag met alle partijen te vermelden, maar de volgende crowdfundingplatforms zijn geaccrediteerd: GeldvoorelkaarVoordeGroeiOneplanetCrowdCoöperatie NLInvesteert en October. Vreemd genoeg krijgen ook de flitskredietverstrekkers Swishfund en Yeaz toegang tot de staatsgarantie. Die trekken ondernemers qua kosten en rente het vel over de neus. En dat met staatsgarantie!

NOW-aanvragen

Het Europees opererende platform October van Franse origine, is de grootste aanvrager van de platforms in de eerste NOW-ronde met 151K. Maar ook marktleider 2019 Geldvoorelkaar voelde de pijn en ontving 136K. De derde grootste aanvrager was DuurzaamInvesteren (Crowdinvesting BV) met een toegekend bedrag van 83K. Deze partij heeft onder meer de Triodos Bank als aandeelhouder. Flitskredietverstrekker Swishfund spant echter de kroon met 313K.

Het is natuurlijk toegestaan, maar het staat niet chic. Deze platforms behoren bepaald niet tot de kleintjes. Dat kleinere non-profit platforms als VoordeKunst en Kentau de NOW aanvragen, is meer vanzelfsprekend.

DuurzaamInvesteren krijgt navolging

Bij DuurzaamInvesteren gaat het al een tijd niet goed. Niet alleen scoort dit platform hoog op het aantal ondeugdelijkheden, ook blijft het volume achter bij de concurrenten sinds begin 2019. Een doorn in het oog is dat DuurzaamInvesteren proposities van de eigen aandeelhouders YardEnergie en Greenchoice plaatst. Hoe kan het platform daarbij objectiviteit garanderen? Helaas volgt aandeelhouder Lambert Kassing van KapitaalopMaat dit slechte voorbeeld op met deze propositie. Ook KapitaalopMaat kent weinig transacties met daarbij ook een hoge (loss giving) default. De aandeelhouder is tevens actief voor de Stichting Zekerheden KapitaalopMaat. Wederom ongewenste verstrengeling van belangen. Belanghebbenden kunnen melding doen bij de AFM.

Vastgoedtransacties zonder heldere risicobeoordeling

Waar de platforms voorheen vooral werkkapitaal verschaften, groeit nu de objectfinanciering – meer specifiek de vastgoedfinanciering – snel. Bijgaand ziet u een indicatief overzicht van de Onroerend Goed (OG) proposities van de drie grootste platforms (2020 YTD) op 18 augustus 2020 om 00.00 uur.

Tweederde of meer van de verstrekte leningen (in volume) is nu vastgoedfinanciering. Hoewel Geldvoorelkaar de meeste proposities post (66%), wordt zij in volume voorbijgestreefd door Collin Crowdfund en NLInvesteert. Dat investeerders wat te kiezen hebben blijkt uit de ranges in Loan To Value (LTV) en de geboden rentes. Op het eerste gezicht lijkt NLInvesteert het betere risico/rendement aan te bieden. Let wel, het aantal waarnemingen is beperkt. De proposities binnen en tussen de platforms wijken sterk van elkaar af. In een enkel geval wordt niet eens onderpand gevestigd, soms een tweede hypotheek (= lastig uitwinbaar), veelal een eerste hypotheek met (te) hoge LTV.

Er ontbreken veel indicatoren om OG proposties op waarde te kunnen schatten: de beoordeling van de locatie, de courantheid en verhandelbaarheid van het pand, de staat van onderhoud (binnen- en buitenkant), de kosten van achterstallig onderhoud of bouwkundige gebreken. Taxatierapporten worden niet bijgevoegd.

Investeren in vastgoed met eerste hypotheek is niet risicoloos. In een crisis komen meer bedrijfspanden leeg te staan. Daarmee daalt de waarde. Geen huurder, betekent sowieso een zeer lage waarde. Excecutieverkoop levert een fractie van de getaxeerde waarde op. Wachten op de juiste koper meer, maar gaat gepaard met doorlopende kosten. Bij particuliere woningen is dat risico minder groot. Maar in ontvolkte en sterk vergrijzende regio’s zeker aanwezig. Meer dan 65% LTV bij courante bedrijfspanden en 80% LTV bij particulier vastgoed voor investeringsdoeleinden is onverstandig. Vooral Geldvoorelkaar en Collin Crowdfund overschrijden die grenzen regelmatig. Geen van de drie platforms hanteert overigens expliciete pricingscriteria voor vastgoedproposities. Andere beoordelingscriteria zijn nodig.

Investeren in de reële economie of meedeinen met speculanten?

Naarmate er meer gehandeld wordt in particulier onroerend goed, zullen de platfoms meebewegen. Daar waar nieuwe panden en projecten worden gerealiseerd via aan-, ombouw en nieuwbouw, zie ik toegevoegde waarde. Daar waar ondernemers hun kosten gelijk kunnen houden met verwerving van het bedrijfspand niet. Investeren in stenen is – zeker nu – slecht voor de liquiditeit van een onderneming. Cash is King in crisistijd.

Maar wat is de toevoegde waarde van opkoop van particuliere panden? Die worden gesplitst of voor drie tot vijf personen ingericht. Huurprijzen worden flink verhoogd, stedelijke omgevingen worden onbetaalbaar voor starters en mensen met lage en midden inkomens. In plaats van honderden euro’s, stijgen de huren naar duizenden euro’s. Niet alleen het snel groeiende platform SameninGeld specialiseert zich hierin. Ook de grote platforms doen mee.

Economen in 17e eeuw noemden grond- en huizenbezitters de steriele klasse, omdat zij niet herinvesteren in directe economie en productiviteit. Adam Smith – schrijver van The Wealth of Nations – noemt hen zelfs parasieten, omdat zij “love to reap, where they never sowed”. Ook Nobelprijs winnaar Joseph Stiglitz, waarschuwt voor de ontwrichtende werking van de toenemende ongelijkheid en de accumulatie van kapitaal en bezit. En u kent vast de econoom Thomas Pikkety, die pleit voor het zwaar belasten van bezittingen en het licht belasten van arbeid?

Kleur bekennen

Met het verstrekken van overbruggingskredieten BMKB-C kunnen platforms hun rol herpakken. Banken laten steken vallen en beperken zich graag tot financieringen van 1 miljoen euro en meer.

Ik ben benieuwd waar de grotere crowdfundplatforms nu voor staan. Blijft het bij het oppikken van de restjes die de banken achterlaten? Zoals het er nu naar uitziet, lijken de grootste platforms veel op elkaar. Tijd voor fusies? Er mag wel wat meer kleur in het landschap komen*. Waar zit de toegevoegde waarde? Wat is hun Why en aan welke maatschappelijke doelstellingen dragen deze grotere platforms meetbaar bij?

 

Lex van Teeffelen

Professor Entrepreneurial Finance and Firm Acquisition

treasuryXL announces collaboration with Refinitiv, one of the world’s largest providers of financial markets data and infrastructure

| 27-8-2020 | treasuryXL | Refinitiv |

VENLO, The Netherlands, August 27, 2020 – treasuryXL, the community platform for everyone who is active in the world of treasury, and Refinitiv, one of the world’s largest providers of financial markets data and infrastructure today announced the signature of a premium partnership.

The collaboration aims at offering a continuous flow of treasury content, making treasury knowledge available. This collaboration includes:

  • collaboration on messaging, content production, and visibility
  • mutual distribution on select items of interest
  • collaboration on larger themes: event promotion, speaking and experts contribution, publications

With this collaboration, treasuryXL and Refinitiv are striving to make sure that treasurers are always up to date with the latest news and events in their field.

According to Kendra Keydeniers, treasuryXL “We are very excited to welcome Refinitiv in our community. Refinitiv is one of the world’s largest providers of financial markets data and infrastructure, serving over 40,000 institutions in over 190 countries. Refinitiv will have a prominent role in the Treasury Topic environment with coverage in corporate finance, risk, cash management, working capital management & treasury software which is a considerable contribution to our ecosystem.”

About treasuryXL

treasuryXL started in 2016 as a community platform for everyone who is active in the world of treasury. Their extensive and highly qualified network consists out of experienced and aspiring treasurers. treasuryXL keeps their network updated with daily news, events and the latest treasury vacancies.

treasuryXL brings the treasury function to a higher level, both for the inner circle: corporate treasurers, bankers & consultants, as well as others that might benefit: CFO’s, business owners, other people from the CFO Team and educators.

treasuryXL offers:

  • professionals the chance to publish their expertise, opinions, success stories, distribute these and stimulate dialogue.
  • a labour market platform by creating an overview of vacancies, events and treasury education.
  • a variety of consultancy services in collaboration with qualified treasurers.
  • a broad network of highly valued partners and experts.

About Refinitiv
Refinitiv is one of the world’s largest providers of financial markets data and infrastructure, serving over 40,000 institutions in over 190 countries. It provides leading data and insights, trading platforms, and open data and technology platforms that connect a thriving global financial markets community driving performance in trading, investment, wealth management, regulatory compliance, market data management, enterprise risk and fighting financial crime.

For more information visit: www.refinitiv.com

Cash is The Whole Royal Family!

26-08-2020 | Olivier Werlingshoff | treasuryXL

Can the treasurer be the linking pin between different departments within organizations?
For cash related topics he or she has to be the linking pin to understand the cash flows within the company and to be in control. When you understand how all departments work and how the financial information is produced by controllers, you can help them and give advice on how to lower trapped cash.

Cashflow

To me the cash flow forecast is the basic of all treasury related items. When setting up the forecast (direct/indirect), it gives you the possibility to dive deep in the risk of FX and take actions to lower them or even better, to develop a guideline on how to handle FX risks in the future. The same can be done for IR risk, debtor risk and all other cash flow related risks. When making the cash flow forecast, you can literally make visual what the effect of a change in payment behavior of your customers or a change in FX rates will be.

The Treasurer’s task

The treasurer has to be in constant contact with all different departments to receive the most actual information. As treasurer, you also have to challenge the different departments on cash related topics. The reason for this is that most of the colleagues are not always cash focused. You have to set up an internal marketing plan to reach all necessary stakeholders (organize meetings, develop reports, mailings, organize events where colleagues can come with cash optimization related idea’s etc…).

Supply chain departments are focusing on delivering on time for production or sales. It is very interesting to focus on the ins and outs of world of supply chain. All goods can be categorized based on the time they will stay in the warehouse as well as the time needed to replace them and the cost of a reorder. When you combine all variables, an optimum can be reach. The information that supply chain and purchasing department can provide you is the order book. This can help you to extent the reliable period of the direct cash flow forecast.


By sitting close to the financial department or the shared service center you can have a better understanding of the payment behavior of clients but also the payment behavior of the company. Is there enough focus on the debtor collection process and is the sales department also aware of the payment behavior of their customers? Are the invoices send on time? Do they use direct debits or are balances on bank accounts swept daily to a master account?


Financial control is a department which is also related to the cash flow forecast. Most of the time they will make budgets of balance sheets and P&L and will make (monthly/ quarterly/yearly) estimations of the working capital parts such as inventory, accounts payables and receivables. By doing so they will be able to predict an indirect cash flow forecast. Are their presumptions for the working capital parts correct? Are they based on the budget sales, or based on the previous years? Most of the time the presumptions explain the difference between the direct and indirect forecast and difficult to track down.

Conclusion

Financing activities such as project financing, supply chain and trade finance can be set up based on a reliable forecast. By increasing the cash awareness in different departments, you will be able to release trapped cash, lower costs and have better control of all cash related items.

Olivier Werlingshoff

Olivier is an operational treasury manager who likes to connect and get in touch with different departments. By doing so he gets the treasury department and the awareness of cash in the picture, gets grip on the cash flow and releases trapped cash as well as lowers costs.
He is available for a permanent/interim position and you can reach him on

+ 31683629427

o.werlingshoff@ziggo.nl.


Does your business need support in Treasury or a Treasury QuickScan?

We have treasurers available, go to Rent a Treasurer for all information.

EuroFinance International Treasury Management Virtual Week 21-25 September 2020

| 25-08-2020 | Eurofinance | treasuryXL |

The pandemic sent shockwaves through global financial markets and confronted businesses with extreme scenarios.

Virtual Event

Now more than ever, we need to learn and engage with other treasury professionals around the world, so that we can navigate and overcome the unprecedented challenges we are facing.

As the current situation unfolds, the role of the corporate treasurer is evolving and becoming more strategic than ever before. The complexities and function of treasury within the business is changing even more rapidly. The question is: What does the future of treasury look like and how will this affect my team? And where can I turn for world-class advice on building resiliency, supporting the business and addressing future challenges?

Look no further than EuroFinance’s International Treasury Management Virtual Week taking place 21-25 September. It will see world-leading treasurers and economists come together to address these issues, deliver big picture global insights and share the essential granular knowledge you and your team need for the path ahead. In the spotlight will be the latest on cash flow forecasting, supply chain finance, tech, liquidity and FX and payments plus much more.

Speakers and Live Sessions

The line-up of speakers is impressive with the likes of Shell, Alibaba Group, HP Inc., eBay, Finnair, Microsoft, Intel Corporation, Schlumberger, Booking Holdings Inc. and Rio Tinto holding centre stage in one of the 75+ live sessions. But don’t worry if you miss a session, they will be available on-demand for you to watch at a time that suits you.

The custom-built virtual conference platform will bring the experience of a live event to life in a virtual world. It offers plenty of opportunities to network and learn from your global peers, plus a smart calendar to build your schedule.

Free Registration

The great news is, the 2020 event comes without a price tag! It is free for corporate treasurers. So, you can get all the world-class expert knowledge and insights you expect from the leading treasury event without the costs of registration, flights, accommodation or even expenses.

What are you waiting for? Set your treasury team up to thrive not just to survive.

Register for free today!

 

Improving Internal Communication to Lower FX Risk

20-08-2020 | treasuryXL | XE |

Poor internal communication can lead to businesses not making the right decisions for the business as a whole—and it can even increase foreign exchange risk.

Poor communication. It’s something that many of us have experienced in all facets of life. At best, poor communication will cause confusion and irritation. At worst, poor communication could progress to costly misunderstandings.

In the business world, internal communication is the key to a cohesive, productive organization. Unfortunately, many organizations around the world have little to no communication between teams. Sometimes this is a result of the organization being large or having recently undergone significant growth. It can also be the result of people believing that certain processes are only the responsibility of one department.

In reality, foreign exchange risk can affect the entire business, and poor internal communication is one of the most common mistakes that can increase a business’s exposure to FX risk. But what’s the solution?

How does poor communication add to foreign exchange risk?

When businesses operate in silos rather than as one collective unit, it’s very likely that they aren’t making decisions with the bigger picture in mind. Poor communication between units means that units are unlikely to have a clear picture of just how their particular operations
and currency market exposures factor into the company’s overall risk level and exposure.

If the poor communication is allowed to spread to decision-making, this could lead to businesses making autonomous decisions about transactions and risk management that aren’t consistent with the business as a whole, and could ultimately undermine other parts of the business. One example of this could be supply chain managers hedging out the risk of higher import prices without taking into account the sales department’s expected revenues from overseas.

Ultimately, your business’s FX goals should be to get the best possible rates for your international payments and minimize your risk exposure. Without effective communication, it will be very difficult—if not impossible—to accomplish this. So, how can you improve your organization’s communication?

How to improve your organization’s communication

There are two parts to this: you should prioritize internal communication, but also make a point to have strong communication with your FX provider. Internal communication, as we’ve discussed, will help your organization to make decisions that are best for the business as a whole, while communicating with your FX provider will help you to effectively resolve issues as they come up and prevent potential issues from arising.

Earlier in this series, we advised you to work with your FX provider to develop a comprehensive foreign exchange risk management policy. Having this policy can address communication issues in the following ways:

  • You and your team will better understand every aspect of your organization’s risk exposure.

  • You can then develop and implement processes to address said risk exposure on a holistic and company-wide basis.

  • You can establish protocols and procedures for how different units across the business should collaborate and communicate, in order to reduce the risk of issues arising as a result of miscommunication.

On one final note, it’s also important that you consider how you can communicate with your FX provider—not just on a day-to-day basis, but in the event that an unexpected issue arises or you need additional assistance with something. When searching for the right provider, take this into account.

Consider:

  • Do they offer phone-based or web-based assistance that you can utilize during any hour of the day?

  • Will there be one person or team as your designated point of contact?

  • How will they provide you with the information you need to make proactive decisions?

These questions could help you to find the provider that’s the right fit for your operation and your currency needs.

 

Get in touch with XE.com

About XE.com

XE can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. XE Business Solutions provides a comprehensive range of currency services and products to help businesses access competitive rates with greater control.

Deciding when to make an international payment and at what rate can be critical. XE Business Solutions work with businesses to protect bottom-line from exchange rate fluctuations, while the currency experts and risk management specialists act as eyes and ears in the market to protect your profits from the world’s volatile currency markets.

Your company money is safe with XE, their NASDAQ listed parent company, Euronet Worldwide Inc., has a multi billion-dollar market capitalization, and an investment grade credit rating. With offices in the UK, Canada, Europe, APAC and North America they have a truly global coverage.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

Scoren met treasury in kleinere organisaties

| 19-08-2020 | treasuryXL | Pieter de Kiewit

Kosten besparen, business kansen creëren en risico’s verkleinen, dat is wat goede treasury elke organisatie kan brengen, dus niet alleen de multinationals. Als treasury aficionado zie ik dagelijks dat organisaties zichzelf tekort doen. In dit artikel maak ik graag concreet waar ik het over heb omdat ik merk dat velen het vakgebied onterecht complex vinden.

Kosten besparen

Het managen van geldstromen kost geld:

  • De bankier als loodgieter stuurt ook een rekening, vaak alleen niet zo expliciet. Deze rekening is bijvoorbeeld voor transacties en het aanhouden van rekeningen. De realiteit is dat de meeste organisaties en vaak ook hun banken geen voortdurend zicht hebben op deze kosten en dat ze voortdurend wijzigen.
  • Wat ook wel eens gebeurt is dat voor één internationale betaling even veel (per stuk) wordt betaald als voor 5.000 internationale betalingen. Dit terwijl kwantum korting van toepassing is.
  • Wat ik ook regelmatig zie is dat een bepaalde financieringsstrategie is gekozen waarbij een oplossing de markt conforme prijs heeft maar de juiste oplossing niet is. Rood staan op een rekening courant is veel duurder dan een hypothecaire lening. Vaak wordt niet nagedacht over wat de juiste oplossing is.
  • De laatste van vele voorbeelden die ik wil noemen is dat diverse offertes aanvragen bij diverse leveranciers kan leiden tot substantiële kostenbesparingen. Vaak is de huisbank best bereid een lager tarief voor een dollar deal te berekenen en zijn er velen die nog goedkoper kunnen leveren.

Het zijn simpele oplossingen maar de tijd wordt er niet in gestoken.

Business kansen creëren

De gereedschapskist van een treasurer zit vol oplossingen die het verschil kunnen maken tussen een kans verzilveren of niet. Zo zie je in bijvoorbeeld projecten organisaties of bedrijven die leveren in exotische oorden, dat de business stopt op het moment dat de klant pas wil betalen na complete levering. Dat kan te risicovol lijken of het kan zijn dat de leverancier de upfront kosten niet kan dragen met eigen middelen. Via garanties, letters of credit, borgstellingen door de overheid of projectfinanciers kan de business dan soms toch worden gerealiseerd. En besef goed, niet zo lang geleden was (equipment) leasing nog geen geaccepteerde oplossing. Nu kunnen transporteurs verladingen aanbieden en kunnen de vrachtwagen producenten meer produceren.

Risico’s verkleinen

Bij treasury en risico wordt vaak gedacht aan rente en valuta. Dat is terecht, de bijbehorende risico’s moeten prudent worden aangepakt. Een veel belangrijker risico is beschikbare liquiditeit. Goede treasurers kunnen forecasten en ingrijpen om cash beschikbaar te maken voor de organisatie. Extra faciliteiten vanuit de bank, doordacht werkkapitaalmanagement, managen van betalingstermijnen en tools als factoring kunnen het verschil maken tussen overleven of niet.

Hulp nodig?

Met deze korte opsomming wil ik duidelijk maken dat voor iedere organisatie treasury van grote waarde is. Dat kan met een expert op de payroll, met eigen boerenverstand of met een tijdelijke oplossing (Rent a Treasurer). Het gaat niet om complexe materie, wel om de bereidheid af en toe een stap terug te doen en het vakgebied te overzien.

Zullen we overleggen? Wie weet kan ik u in contact brengen met de expert die voor u het verschil kan maken.

 

 

Pieter de Kiewit

Owner at Treasurer Search