Sep 17

Putting a Figure on it – How Corporate Treasury Helps Boost the Profitability of Businesses | Part 3: Intercompany Netting as a Value Driver

Treasurers use a number of instruments to manage their company’s cash flows with maximum efficiency, ensuring obligations can be met at all times. In two previous blog posts, I set out to highlight that this work directly benefits a company. Taking the examples of FX risk management and interest management, I was able to demonstrate the concrete monetary value treasury management creates. Today, I will be taking a closer look at intercompany netting, which can potentially be a particularly powerful tool depending on a company’s treasury profile.

The more complex and the more decentralized the exchange of goods and services in a group, the more value can be added by engaging in intercompany netting. The volume of intercompany payments is another important factor to determine...

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Sep 17

On Liquidity Planning: How to transform the seemingly impossible into the definitely possible

Got Liquidity?

Liquidity is as vital for a company as breath is for a living being. Without it, both will falter almost instantly. Even eminently profitable businesses might struggle to meet their obligations in times of crisis if they don’t have a sustained and dynamic liquidity management strategy in place. Hence the latter should be the supreme priority on a treasurer’s agenda.

Several years ago, Martin Bellin published an article in Treasury Magazine, titled “The (Im)possibility of Liquidity Planning”. With its negative prefix in parentheses, the headline neatly sums up the predicament of many a treasurer: even though liquidity management is potentially possible, there are various perceived and actual obstacles that need to be overcome.

  Keep the plan rolling…


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Sep 17

BELLIN on Tour: International Trade Shows 2017

From Iceland to South Africa and from Canada to Japan: BELLIN is a global player. We have clients worldwide, and this fall we will also be on trade show tour around the globe. Join us at any of the following events:

September 13 at SWISS TREASURY SUMMIT in Zug (Switzerland)

October 4-6 at EuroFinance in Barcelona (Spain) and at Alpbach Finance Symposium in Alpach (Austria)

October 14-17 at AFP in San Diego, CA (USA)

October 16-19 at SIBOS in Toronto (Canada)

October 24 at SWIFT for Corporates Day in Salzburg (Austria)

November 8-9 at Structured Finance in Stuttgart (Germany)

November 23-24 at DACT  in Noordwijk (Netherlands)

You can witness live demonstrations of the BELLIN solutions and our experts will be on hand to answer all...

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Sep 17

The Virtual Network Bank Concept: Global Transparency in Banking Communication

Today, more businesses than ever before are active on the global stage. Gone are the times when selling products and services abroad and opening up subsidiaries in other countries was the stronghold of large multinational groups only. At the same time, going global also requires the setup of a global banking structure. In many cases, companies expanding globally find that their existing banking network is not adequate to meet the needs of all markets. These companies face a considerable obstacle: finding a banking structure that will cater to both old and new markets.

How do I find the right bank?

Finding the right bank can be a time-consuming and complicated process that raises questions at multiple levels: how do I know which bank best meets my needs? What will this cost me?...

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Aug 17

Putting a Figure on it – How Corporate Treasury Helps Boost the Profitability of Businesses | Part 2: Interest Risk Management as a Value Driver

Last week we looked at how currency risk management has a positive impact on the profitability of businesses and how this can be quantified. Today, I’d like to focus on another risk management discipline: active interest management. Based on specific calculations I will illustrate how and to what extent active interest management can also boost corporate profitability.

Last time, I introduced Supplier plc., a globally active group with FX flows and international payments. Today’s analysis will again be based on this realistic, yet fictitious group whose financial profile can be summed up as follows:

Turnover: EUR 1.5 billion EBIT: EUR 70 million EBT: EUR 50 million Borrowed capital: EUR 500 million
Of which long-term borrowed capital: EUR 200 million

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