The Treasurer’s Guide to Trade Finance v
Foreword
The global economic downturn has focused treasurers’ minds on fundamentals.
Companies have been seeking to improve liquidity within their own working capital
cycles because less is available following the upheaval in the banking sector. The more
forward-looking are trying to inject liquidity into their wider supply chains, as suppliers
have come under pressure.
Companies also increasingly need to manage counterparty, bank and country risk.
Using technology to provide efficiency and information-sharing along supply chains has
resulted in better trading relationships. The ever-changing regulatory environment is
also altering the cost and complexity of transacting business, particularly internationally.
Many governments have revamped their support for exports, in a bid to underpin
economic growth. This had led to a number of innovations, for which the banks are now
able to provide solutions in conjunction with organisations such as UK Export Finance.
In this context, many treasurers are taking the opportunity to focus on managing
working capital as efficiently as possible. They are also looking to traditional trade
techniques that offer the opportunity to both provide funding and mitigate risk.
The Treasurer’s Guide to Trade Finance examines trade finance’s traditional role of
facilitating transactions. It assesses how technology is making it possible for treasurers
to integrate trade and cash, providing the opportunity to unlock working capital and
reduce costs. The guide also considers how traditional trade techniques can be used to
support and finance activity along a supply chain.
This guide is designed to support treasurers who are new to the subject, or those
wanting to take a fresh look, by showing how traditional techniques can be used in new
and imaginative ways.
The ACT is delighted to work with RBS once again to produce this comprehensive
guide to help the professional treasurer consolidate their influence in their organisations- in particular in the boardroom – offering their skills, technical knowledge and
professional discretion to shape and drive their organisations. To ensure that tomorrow’s
treasurers are capable of taking on these responsibilities, we need to support the growth
of high-potential, well-rewarded, skilled and experienced treasury professionals who
use their knowledge to unlock the full growth potential of their businesses. Amongst
other things, this means the ACT must continually develop its range of support products
to ensure that they are up to date, in demand and deliver what our customers want.
The invaluable support of RBS in producing this book is an example of the treasury
community working together for everyone’s benefit.
Transaction Services, RBS Colin Tyler, Chief Executive,
The Association of Corporate Treasurers