Current European Trends in Cash Management
Greg Bruns will service Texas and Midwestern companies in all their financing and treasury projects. His recruitment adds to Redbridge’s capacity to better assist U.S. companies. In addition to his experience and impressive resume, Greg has a passion for serving clients and is a wonderful cultural fit with our firm.
“It is possible to offset the increase in scheme fees charged by major international networks,” Mélina Le Sauze, Redbridge
At the time of the biannual review of its network fee schedule, applied to acquiring banks, Visa Europe has introduced new elements and raised the rates on ecommerce transactions. For Mélina Le Sauze, Director at Redbridge, these changes strengthen the interest in optimizing the allocation of acquiring bank flows.
The vast majority of Fortune 100 companies, if not all, utilize the public markets for raising capital funding through alternative sources rather than utilizing only banks for raising needed capital. In the Fortune 101 to 929, the majority utilize banks as their capital funding sources, reveals a in-depth study of the debt structure of Fortune 1000 conducted by Redbridge.
Redbridge is pleased to announce the addition of Dan Carter as Associate to lead its U.S. Payment Card Solutions within Redbridge’s U.S. Treasury Advisory team. The recruitment is marking the extension and enhancement of the support and advice that Redbridge provides to global corporations around the world.
Redbridge strengthens the value of its independent advice to international trading companies. Based in Geneva, Mihai Andreoiu is appointed as Senior Director, Head of Commodities Trading & Trade Finance sector. He will also be responsible for the development of Redbridge’s new Swiss office opened in September.
Using the Commercial Paper market to cover the bridge financing of an acquisition can provide buyers with substantial savings. However, the strategy does require a bit of foresight and vigilance on a number of points, as Matthieu Guillot, senior director at Redbridge, explains.
“Ensuring an efficient global treasury organization requires dedicated management focus on numerous components”, Raphael Leprette, Senior Director, Redbridge
Raphael Leprette, senior director at Redbridge, discusses the opportunities arising from a merger of two treasury organizations. According to him, to optimize synergies, it is key to value the history, culture, experience and expertise of each team in the merger and encourage cross-fertilization of knowledge and sharing of expertise.
Last August, the Financial Accounting Standards Board (FASB) issued an update that simplifies accounting rules around hedge accounting. The update is effective for public companies in 2019 and private companies in 2020, but early adoption is permitted. With several options available in the implementation, the full impact of the new guideline must be carefully determined before setting an adoption date.
Without waiting for the final terms of the new prudential treatment of notional cash pooling, several sponsor bank institutions have decided to position for clear withdrawal of their pooling services, says Solenn Le Lay, associate director at Redbridge.
Bank account management has proven to be anything but simple primarily because many treasurers try to handle it in a piecemeal, tactical way instead of a holistic, strategic way, says Dan Gill, senior director at Redbridge.
In cash pooling, companies have a choice between using their bank partner or relying on the functionalities of their treasury management system (TMS) to manually (or semi-manually) manage their deposits. Redbridge reviews the advantages and disadvantages of each solution.
The relationships that corporate treasury maintains with banks to manage cash operations are some of the most complicated and often confusing in the entire business. Because of the general misunderstanding of the cash management services bought from banks and the lack of available time in most treasury organizations, many companies perform only a cursory review of the information banks provide on service usage and costs each month. In some parts of the world, banks are not yet even providing the details of the number of transactions completed or their cost which leaves geographical blind spots in many organizations. There are literally millions in errors taking place each month that go unnoticed and we simply have to do a better job. By most estimates these errors range from 5% to 10% of our total bank fee spend and that represents real money in most companies. So, what is there we can do?