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a key working capital tool during the pandemic, with
many large corporates establishing or expanding
programmes.
This technique is something numerous UniCredit
clients have taken advantage of recently, with Italian
retail store Esselunga, for example, extending
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advance of invoice due dates.
Other clients have also moved swiftly, too. PAM
Group, for instance – an occupational health and
wellbeing services provider – established a EUR
130 m envelope to extend support to its suppliers,
while Conad, a retail store company, established
EUR 750 m to provide its suppliers with access to
capital ahead of the payment terms of their trade
receivables.
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the large number of smaller suppliers that typically
make up the “long tail” can limit the application
of reverse factoring. To overcome this issue, cash
rich corporates often use dynamic discounting:
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suppliers from their own cash reserves, in return
for a scaled discount – the earlier the payment in
advance of its due date, the greater the discount.
Digital solutions
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invoices, dynamic discounting is, however, a
challenging process to manage, especially when
working remotely.
Digital dynamic discounting platforms – such as
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FinDynamic – provide part of the answer. UniCredit,
for its part, has already been able to support Venchi,
the Italian chocolate and ice cream manufacturer,
with FinDynamic’s mobile- and web-based tool,
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invoices and early payments through an easy-to-
use application.
Of course, this is not the only digital working
capital solution available to treasurers today.
UniCredit, recently announced it had built on its
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Taulia, whose platform provides innovative, digital
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solutions for buyers and suppliers.
These tools not only serve to extend critical support
right the way down the supply chain, they also
ensure key working capital processes are digitised
for a seamless transition to remote working.Navigating economic crises
The COVID-19 pandemic, and resulting economic
crisis, has left corporates grappling with the
challenge of ensuring business continuity while
working remotely, accessing short-term liquidity,
and supporting supply chains.
Thankfully, by following two simple steps, treasurers
have the ability to not only weather today’s
recession, but to shore up their business for future
economic shocks, and digitise their architecture in
the process.Adeline de Metz
Global Head of Working
Capital SolutionsRaphael Barisaac
Global Head of Cash
Management