Leveraging Financing Opportunities for Competitive Advantage

by Helen Sanders, Editor

There can be few business leaders today who do not recognise that securing access to liquidity is critical to business continuity. Indeed, declining or negative free cash flow and unresolved future debt maturities are amongst the strongest warning signs of a company in distress. Regulation such as Basel III is putting pressure on corporations’ ability to finance their business using bank debt. Equally significantly, companies need to compete effectively with corporations that have greater access to liquidity in their home markets, such as China. Consequently, treasurers are – and should be – looking to a wider range of markets and funding sources than ever before.

Trade expansion

With both China and India reporting a slowdown in growth (although levels are still well in excess of most Western markets), companies need to be more innovative in finding ways to sustain growth, both by looking to new markets and driving improved operational and financial efficiency. Kaushik Shaparia, Asia Pacific Head of Trade Finance and Cash Management for Corporates, Global Transaction Banking, Deutsche Bank outlines,

“Sustaining growth is becoming more of a challenge in Asia, so companies are looking to access new markets to increase their competitiveness. As a result, we are seeing an expansion in trade finance activity, particularly within Asia, which is growing more quickly than inbound or outbound trade.”

Download our Free Treasury App for mobile and tablet to read articles – no log in required.

Download Version Download Version