A key component of supplier risk management for many companies is monitoring the supplier's financial health and viability to try and obtain early warning of potential supplier issues that could impact the continuity of supply. However, by itself, supplier monitoring misses opportunities to actually bolster and improve the supplier's financial health, which is particularly important for those suppliers that are highly leveraged and/or have cash flow challenges.
The corporate failures that led to the 2008 global market collapse and subsequent recession had an unexpected outcome. They raised the profile and mandate of the CFO, who was taken out of the silo of finance and tasked with implementing enterprise-wide initiatives to create transparency, boost financial results and find areas to cut costs and make improvements.
As the global economy picks up, working capital optimization will continue to be a high priority for corporate treasurers in 2015. In their drive for competitive advantage, treasurers are increasingly looking beyond the traditional forms of finance to explore a wider range of alternative funding options that support their working capital requirements, ranging from supply chain finance (SCF), to trade receivables securitisation (TRS), to factoring.
For many companies, 2015 is looking rosy. The overall economy is finally accelerating out of the worst recession since the 1930s, helped in no small part by construction as the Construction Backlog Indicator (published by Associated Builders and Contractors) reached an all-time high in June.
As the economy continues to improve, more manufacturers are making capital investments to fuel their growth. When business owners and managers consider acquiring equipment, they often think of their payment option as a "lease versus buy" decision.
Is it wise to take advantage of early-payment discounts offered by suppliers? Or should you make other use of your cash until payment is due? There are lots of things to consider.
The United States has the highest corporate income tax rate among the 34 industrialized nations of the Organization of Economic Cooperation and Development, the world trade group, says a new paper from the Tax Foundation.
By many accounts, as the economy adds jobs, more small businesses are looking to borrow money, and more banks are eager to lend it - at least to the right borrowers.
Whereas business interruption insurance covers lost profits and continuing expenses as a result of physical damage to a policyholder's own facilities, contingent business interruption insurance covers such losses stemming from damage to the premises of a supplier or customer. Large companies typically have both types of insurance as part of their property insurance policies; smaller companies may not have the contingent business interruption extension.