Manufacturing News

Are you on top of your Global Trade cash flow?

The import and export arena continues to evolve as the world’s trade corridors expand beyond traditional and local markets – creating significant business opportunities on a global scale if cash flow is optimised.

For manufacturing businesses with complex supply chains that stretch far and wide across multiple geographies and time zones, a working capital strategy can allow businesses to unlock cash that may be otherwise tied up in their supply chain.

By establishing a clear working capital strategy, businesses can take a strategic look at their supply chain to identify areas where their cash cycle could be reduced or the payable cycle could be extended. This will allow businesses to stay in control of their cash flow.

Creating a Cash Flow Strategy involves:

  • Mapping cash flows 

Be clear about how cash moves through your balance sheet. This includes looking at payment terms for receivable and payables.

  • Setting internal targets

Set discreet targets around how fast the business wants cash to move through the balance sheets and how many times balance sheets should turn over on an annualised basis.

  • Benchmarking performance

Consider your business’s working capital performance against competitors or peers if possible.

CommBank’s new Global Trade platform

CommBank’s new Global Trade platform on CommBiz, their online business banking system, gives businesses more control over their supply chain and cash flow by allowing them to manage and oversee the entire supply chain online.

The Global Trade platform allows users to manage all their trade finance, foreign exchange and cash management positions in real time, and is also multi-currency responsive.

Supply Chain Finance lets businesses borrow on the value of their inventory instead of having to seek lending against other assets. For smaller businesses this can often mean borrowing against the value of their personal assets.

One of the main benefits of CommBank’s Global Trade platform is that it lets businesses take advantage of global trade opportunities as they arise.

For more information, visit Commbank’s Global Trade platform or talk to a CommBank Trade Specialist on 1300 654 112.

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