More than seven in 10 corporate treasurers (71%) indicated that invoice discounting is one of the key ways in which treasury can provide tangible value for the company.
The finding reflects that accelerating payments to suppliers is one of the areas many corporates are looking into to improve their processes and create greater efficiency.
The Supplier Finance Survey, conducted by working capital exchange C2FO, polled leading UK corporate treasurers in Q4 2015. The survey also found that:
- 96% of corporate treasurers agree that the role of supplier finance is growing; and
- 67% of treasurers believe their supply chain is currently suffering cash and liquidity challenges.
According to the survey, innovative technology is playing a role and is enabling the treasury function to employ methods such as dynamic discounting, which generates a better return on cash whilst supporting the supply chain.
“Given the increasing pressure on treasurers to manage working capital and to generate a better return on cash, we have seen tremendous growth and we expect to see more big buyers implementing invoice discounting programmes in 2016,” said C2FO's Colin Sharp.
The research was conducted at Cash and Liquidity Optimisation Europe, a conference for corporate treasurers and finance directors in London on 3–4 November 2015.
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