Building flexibility into treasury
An immediate benefit is payment flexibility. Businesses could, for instance, negotiate an early payments discount or flex the payments cycle to create additional working capital, while still ensuring suppliers are paid on time.
Anna explains “Let’s say a business has 30 days to pay. By introducing a card-based solution, they can still pay on time, but the treasurer can extend the corporation’s terms by up to 86 days because of the payment cycle back to the card provider. They now have additional days to use the additional working capital.” Or an opportunity to build stronger supplier relationships through better dialogue or by paying more strategically.
Increasing control and visibility
Insight and control are other factors. “Controls can be embedded within the payments features and applied on the value of spend on certain items, or where those items can be spent,” says Anna. “Through the data our solutions provide, treasurers get real insight as to what money’s been spent and when it is coming in and out of the organisation. This gives them the control, visibility and transparency they need.”
Treasury adds value to the business
Access to working capital is a key driver of treasury and, as card solutions change the dynamics of the payment landscape for businesses, Anna expects treasurers to continue to grow their influence. As well as becoming core to business decision-making, they will have greater involvement in leveraging technology solutions.