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Unlocking cash flow and savings with working capital optimisation tools

PayStream Advisors’s 2017 AP & Working Capital Report (underwritten in part by INSPYRUS) begins with the obvious, but essential comment, that, “Working capital optimization involves strategically optimizing cash flow by re-evaluating and restructuring payment times and terms to make them more favorable for the company. The goal is to improve the buyer’s cash conversion cycle without hurting suppliers’ own cash flow needs. However, different tools can be used for this purpose, and the varying working capital terminology and methods create confusion among finance professionals. This confusion tends to either prevent companies from attempting optimization at all, or causes them to try to optimize their working capital in ways that do more harm than good.”

How working capital can be optimised

PayStream Advisors created hypothetical case studies to show the possible impact of the three chosen WCM optimisations tools: 

  • Supply Chain Finance:
  • Dynamic Discount Management
  • Virtual Accounts
  • Source & Copyright©2017 - PayStream Advisors 

CTMfile take: Worth a download. 

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This item appears in the following sections:
Working Capital Management
Order-to-Cash Cycle in WCM
Trade Finance
Dynamic Discounting

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