The simultaneous taunt of higher interest rates combined with increasingly restrictive bank lending is negatively impacting suppliers' ability to access much needed capital on reasonable terms. To mitigate potential risk, there is an imminent opportunity for Financial Leaders to collaborate with their Issuer Banks to Identify a range of practical and tailored payment instruments that benefit both buyers and suppliers.
CFOs should leverage collaboration to manage the increasing challenges of:
Suppliers under additional margin pressure as bank and non- bank lending options increase
Smaller businesses struggling to access capital through traditional lending options
The risk of rising vendor bankruptcy, especially around lower-tier suppliers
Vendors that may be forced to make short-term decisions to access capital at higher rates could have long-term, negative ramifications, all below the radar of their credit score
Vendors potentially increasing risk due to their need to cut corners. For example, reduction of inventory levels may lower their supply chain's ability to “flex” as demand increases
Increased risk due to potential supplier insolvency. More sophisticated buying organizations have the potential to dominate the market through access to rich supply risk insights giving them the agility to respond at greater speed than their vulnerable competitors
Robobai Treasury Intelligence facilitates spend analysis insights for banks and organizations to analyze payment practices and terms within purchase-to-pay (P2P) processes. It explores the opportunities of leveraging all possible discounts or payment channel optimization from the invoice payment process, to improve working capital and increase supplier engagement. Leveraging Treasury Intelligence analytics and spend visibility insights with network-based payment solutions will strengthen relationships and build resilience for both buyers and suppliers.