An Integrated Solution to Manage Global Liquidity
From Excess Working Capital to Efficient Funding Management
Optimizing working capital is never a static process. Changing market dynamics, regulations, and corporate actions drive changes from minor fine tuning to major rework. For example, rising market rates increase the carry cost of excess working capital. Negative market rates provide the challenge of reducing working capital principle. Local regulations can also significantly reduce working capital mobility. In addition, recent tax and trade policy changes may result in changes to corporate structures as well as working capital structures.
Thankfully advancements in technology have created new tools which are becoming available globally to help treasurers improve efficiency amid this complexity. However, knowing how to connect both the new and existing liquidity management tools in an integrated manner will help you extract the most value from your working capital.
An Integrated Toolkit for Efficient Funding
Virtual accounts mark an evolution in liquidity management and deepen your ability to improve funding efficiency. The ability to transition existing accounts to virtual accounts and back to physical accounts as needs arise, as well as connect virtual accounts to physical cash concentration and notional pools, compounds the benefits of virtual account solutions. As part of an integrated cash optimization tool kit, virtual accounts add a significant degree of flexibility, visibility, and provide greater ease to manage in a rapidly evolving environment.
Consider the following approach to revisiting rationalization in an integrated manner:
For more information, contact your J.P. Morgan Treasury Representative.
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