View Post

Technology CFO’s and Reducing DSO

In Big Data, CFO, Machine learning by admin

Among CFO’s there’s often talk about how to increase the efficiency of working capital in the organization. Is it by reducing DSO (Days Sales Outstanding), reducing DIO (Days Inventory Outstanding) or extending DPO (Days Payment Outstanding). Sounds like an acronym cocktail right? Basically, do I collect my own sales receipt faster, get inventory/deliverables out of the door faster or just pay my suppliers later. Conventionally, extending DPO ends up being the first route of increasing working cap, followed by chasing up on those receivables (DSO). It’s a lot easier to pay suppliers later than chase receivables and or think about …

View Post

Is Supply Chain Finance only Necessary for Cross Border Suppliers?

In CFO, Cross border, KYC by admin

Let’s start with a key question, what is supply chain finance? Supply chain finance (SCF) is when supplier invoices get financed by a bank on the basis of the creditworthiness of the buyer. A supply chain finance program is when a large buyer’s CFO approaches its bank asking to set up a (also known as reverse factoring) program for a number of suppliers. While suppliers can be based domestically, more often than not, historically such SCF programs were designed to support international cross border operations with cash strapped suppliers based in a different country from financing bank and buyer. This …