Optimising working capital is a complex undertaking, yet finding the right solution hinges on answering two simple questions, says Adeline de Metz, Editorial Board Member of TRF News and Global Co-Head of Trade and Working Capital at UniCredit.
What is the company’s financial situation?
The first port of call for an effective working capital management programme is to consider the unique financial situation of the corporate – including its size, credit rating and access to liquidity.
- What are the company’s working capital objectives?
Equally important are the reasons why the corporate is looking for a working capital solution – what challenges need to be addressed and what objectives is the company looking to meet?
Once these questions have been answered, a number of working capital techniques can be pulled together to generate a holistic and comprehensive solution.
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