BCR Publishing
We are the leading provider of news, market intelligence, events and training for the global receivables finance industry.
Working with industry leading organisations, experts, governments and universities, BCR Publications delivers expertise in factoring, receivables and supply chain finance to a global audience.
BCR has long been a beacon of innovation and excellence in the realm of receivables finance, playing an instrumental role in shaping the industry’s international landscape. Through its comprehensive conferences, insightful publications, and thought leadership, BCR has facilitated crucial dialogues and connections among industry professionals, driving forward the development of receivables finance globally.
How To Optimize Your Cash Management – upcoming event
| 19-03-2018 | treasuryXL | TIS Treasury Intelligence Solutions |
TIS will be joined by Cashforce, at the TIS Experts Evening in Amsterdam. The main focus will be on TIS client Archroma and their presentation on the global implementation of TIS.
TIS is the leading cloud platform for the management of company-wide payments and cash flows. TIS enables companies to make more efficient, more secure and more cost-effective payment transactions while also enabling customers to make better decisions when analysing financial and operational performance in real time.
Bas Coolen, Head of Treasury at Archroma, will present challenges in his department and his key objectives for a consolidation of bank account management and an optimization of payments.
Archroma is a global colour and specialty chemicals company headquartered in Reinach near Basel, Switzerland. It operates with 3,000 employees over 35 countries and with 24 production sites.
Cashforce will inform you about the art of automating your cash forecast with minimal effort.
TIS and Cashforce are very much looking forward to stimulating discussions and ideas with their comprehensive agenda and lectures. Reports on trends, achievements and real-world examples from the industry will round up the program for this evening.
During the networking section you will have the opportunity to further exchange with Bas Coolen and the experts from Cashforce and TIS. You can take this opportunity to ask your questions about how to operate an elaborate cash management system, that offers the functionality you require.
The event is being held in the Dylan Hotel, built on the site of a famous theatre – so we can expect a good performance.
Register now for one of the last remaining seats via the following link: Expert evening Amsterdam
treasuryXL wishes everyone – both participants and attendees – a productive evening and will report back later with our findings.
Smart contracts – oxymoron or the future for business?
| 16-03-2018 | treasuryXL |
Definition
Wikipedia defines a Smart contract as “a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible”.
These contracts facilitate the transfer of goods, services, property, money – in fact anything of value – in a manner that is transparent and direct. It removes the role of an intermediary.
How they work
You draw up an agreement electronically
The agreement is encrypted and placed on a secured shared ledger accessible to the counterparty
As this is the Blockchain, the data is backed up at various other locations
Both parties perform as per the agreement
Costs are reduced by the absence of intermediaries
As both parties have agreed to the contract they are faster and less expensive to administer
Being electronic there is less possibility of errors occurring due to manual input
Advantages
You decide who can access and amend documentation
Rules that have been agreed upon define how changes can be made
Any agreed change in one document is automatically made to all relevant documents
Encryption and the methodology of the Blockchain ensures that transactions cannot be altered after being agreed and the block validated
Disadvantages
No action written in a contract can be against the law of the land
Contracts still have to be written – electronically. This entails human involvement that could lead to errors
Considerable knowledge of computer coding is required
Lawyers still need to be involved in the formation of the contracts
Costs – employing these specialists will come at a steep price
What further uses can the Blockchain provide
Digital identity – it will be possible to identify an agreed counterparty and all their static data can be stored
Proof of provenance – especially for ethical businesses, it will be possible to issue certificates proving the source of goods
Communication within the supply chain – discrepancies will show up and can be proactively addressed
Payments – removing financial intermediaries implies quicker payments and reduced costs
Ownership – Smart contracts enforced by law make it possible to register the legal owners of goods and property
Loyalty programmes – with all the details present from all transactions, it is possible to initiate programmes to reward clients/customers
The greatest savings will be seen in processing – both in time and costs. Some reports suggest savings of up to 40% can be established, together with a real-time overview of positions. However, the whole system relies on one major factor – trust. Where we previously met people, negotiated, agreed etc., now we will do more of that online. Furthermore, implementation of a Blockchain strategy will require a company to complete revaluate their current way of working, leading to considerable planning and strategic positioning.
The proposed future looks exciting – it is now up to industry to determine the road on which they wish to travel.
Term sheets – glossary of terms
| 15-03-2018 | treasuryXL |
However, when entering into a loan or derivative it is always prudent to draw up a term sheet stating all the relevant criteria to enable the bank to quote a price. Once the trade is effected, then a confirmation is sent which should have the same terms and conditions as the term sheet. Here is a list of terms that are regularly used and their meaning. They mostly apply to physical products as well as to derivatives.
American Option – an option that can be exercised on any working day until the expiration date
Bermudan Option – an option that can be exercised on more than one specified date before the expiration date
European Option – an option that can only be exercised on the expiration date
Binary Option – an option whose payoff is either an agreed amount (monetary or asset) or nothing at all
Call Option – The right, but not the obligation, to purchase a specified underlying asset, at a specified price (Strike price) on a specified date in the future
Put Option – The right, but not the obligation, to sell a specified underlying asset, at a specified price (Strike price) on a specified date in the future
Cap – an option that pays out when a specified interest rate price exceeds a pre-agreed level (Strike price)
Floor – an option that pays out when a specified interest rate price falls below a pre-agreed level (Strike price)
Collar – the simultaneous purchase of a Cap and sale of a Floor on the same specified interest rate for the same nominal amount, protecting the purchaser from rate rises whilst negating the cost of the option by selling the Floor
Strike price – the price (level) at which an option holder can exercise their rights under the agreed option
Premium – the cost of buying an option
Trade date – the date when the specifications of a contract are transacted
Effective date – the start date of a contract
Termination date – the end date of a contract
Payment date – the date on which a payment is made
Fixing date – the date on which a floating rate is set/fixed
Forward start – a contract agreed on a trade date, that becomes effective on a specified future date
Tenor – the length of time that a contract is valid
Reference rate – the specified interest rate (or FX spot) index upon which future cash flows are based
Fixed rate – an agreed interest rate that cannot vary over the lifetime of the contract
Float rate – an agreed index rate that can be periodically reset over the lifetime of the contract
Derivative – a financial instrument that derives its value from the value of an underlying asset
Break clause – a clause written into the contract, that releases both parties from the contract in the event of a pre-agreed relevant event taking place
If you are interested to know what the effect of these terms can have on a contract, please contact us for more detailed information.