OPTIMISING WORKING CAPITAL IN A CRISIS

Clients

Wednesday 23 September 2020

23 September 2020

In a recent interview with The Banker, Luca Corsini, Co-Head of Global Transaction Banking, explains that corporates are working harder than ever to get more from their operating capital

2:00 Min

The global economic downturn caused by the coronavirus pandemic has left corporates of all sizes grappling with the challenge of defaults and delays in payments, with many businesses facing a dip in revenues over the short and, perhaps, medium term, whilst fixed costs such as payroll and rent remain in place.

To combat this, they are increasingly in search of guaranteed or quicker payment, drawing on established working capital techniques such as receivables finance in the form of factoring, forfaiting or securitisation.

“We’ve seen an acceleration of interest from companies that were never previously interested in payables or securitisation programmes to help them manage their working capital in a more efficient way”, Corsini recently told trade magazine The Banker.

Furthermore, as businesses around the world switched to working remotely, the race to fully digitalise financing processes and ensure business continuity intensified.

“Some corporates that were reluctant to move away from traditional paper-based processes have discovered how easy and safe it is to do everything digitally,” added Corsini.

Earlier this year, UniCredit announced a collaborative agreement with Taulia, a San-Francisco-based fintech that provides innovative, digital supply chain solutions for buyers and suppliers, including supply chain finance, cash forecasting, electronic invoicing, and dynamic discounting.

Corsini remarked: “The cooperation with Taulia allows us to offer to our clients a platform which is very efficient in terms of onboarding suppliers, as well as extending our geographical reach.”

Earlier this month, The Banker recognised UniCredit as the ‘Best Bank for Supply Chain Finance’ at its 2020 Transaction Banking Awards.