There are several working capital solutions that multinational companies can consider based on their debtor exposure, or the amount of money they are owed by their customers. These solutions can help multinational companies manage their cash flow and meet their short-term financial obligations.
- Invoice financing: If a multinational company has a large number of outstanding invoices, it can consider invoice financing. This involves selling the invoices to a third party at a discounted rate in exchange for immediate payment. This can provide the company with quick access to cash and help improve its cash flow.
- Factoring: Similar to invoice financing, factoring involves selling accounts receivable to a third party at a discounted rate in exchange for immediate payment. This can be a useful solution for multinational companies with a large debtor exposure.
- Lines of credit: A multinational company with a high debtor exposure may also consider applying for a line of credit from a bank or other financial institution. A line of credit allows a business to borrow money up to a certain limit as needed and make regular payments to repay the borrowed amount.
- Short-term loans: Multinational companies with a high debtor exposure can also consider taking out a short-term loan to meet their working capital needs. These loans are usually for a period of one year or less and have relatively lower interest rates compared to long-term loans.
It's important for multinational companies to carefully evaluate their options and choose the solution that best fits their needs and financial situation. It may be helpful to consult with a financial advisor or accountant to determine the best course of action.
- The company will be able to optimize the asset site of its balance sheet, by
- Optimizing working capital using PRI® CrediSoft
- Monetizing open account receivables through PRI® inside
- And will be able to reduce funding costs
- As part of the trade-off between direct payment of invoices of creditors and payment discount optimizing the credit site of the balance sheet using PRI® Supply Chain
- And creditors will monetize the account receivables and in addition can optimize working capital using PRI® CrediSoft
Qube added value
- Qube Financing (and its affiliates) have developed the Qube platform, supported by its proprietary PRI® inside infrastructure, front-end to back-end fully automated receivables financing platform (“Qube Platform”), as one of the earlier Fintech 3.0 initiatives in the market and is fully equipped to be the winning platform of the third wave.
- This Qube Platform is fully operational and has been fully adopted by institutional investors, including the standardized procedures, ‘modus operandi’ and underwriting process steps & criteria.
- Qube targets European SME and Mid Market Corporates with a fully standardized approach as well as tailored solutions for multinationals, predefined underwriting criteria that are agreed with institutional investors and supported by PRI® inside and the add-on credit & collection management application PRI® CrediSoft and PRI® Supply Chain.
- Offering consolidated multi jurisdictions multi operating companies fully automated working capital financing solutions based on invoiced turnover, whereby PRI® inside directly interfaces with the Corporate's ERP systems, the Connection.
- The Qube Platform benefits from a modular design and standardized processes and legal infrastructure.
- US version of PRI® infrastructure can be calibrated for US time zone and jurisdiction.
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Working Capital in motion