Cash & Liquidity Management for Corporates

Cash & Liquidity Management

Optimizing the global cash position of your organization and mitigating operational risks related to payment activities is the overall goal of corporate treasury, with liquidity management following the principles of security, liquidity and yield (SLY).

Managing cash is focused on implementing a controlled and secured purchase-to-pay (P2P) process and a timely and efficient order-to-cash (O2C) process.

Trends & Developments

  • Due to regulations such as Basel III, traditional cash management practices will be called into question in the near future;
  • In the current volatile financial markets and interest-rate environments corporate treasuries prefer security and liquidity over yield;
  • The design of your optimal cash management structure is a highly complex exercise because of a wide variety of legal, regulatory, accounting and tax restrictions;
  • Centralizing and automating your payment and collection process will ensure complete visibility and mitigate operational risks related to payments;
  • More advanced corporates are moving towards so-called transaction hubs, centralizing and monitoring all relevant treasury transactional data. The insight from this data is used to optimize P2P and O2C processes with the objective of improving financial supply chain management.

How can we assist you?

  • By leveraging technology and treasury systems the payment or collection process is centralized and standardized via the implementation of ‘on-behalf of’ structures (POBO, COBO);
  • The design of the optimal cash pooling structure will ensure the optimal flow of funds through the global organization, minimizing intercompany flows and overdraft fees;
  • Improved cash flow forecasting will minimize the amount of cash to be held, which can be moved towards longer-term investments to increase yield.
  • Multinational corporates will have to make sure their cash management solution is future-proof and able to cope with new regulation such as Basel III. This is where an independent and specialized consulting partner such as Zanders can add significant value to your organization.

Interested in cash & liquidity management?

Laurens TijdhofSander van Tol
Get in touch with Laurens Tijdhof or Sander van Tol for more information about cash & liquidity management.