What instruments do you currently use to finance your working capital?
Working capital financing is nothing new; it has always been one of the core tasks of corporate finance departments. Thanks to advancing digitalization, however, the possibilities are changing. There are not only new providers, but also a number of product innovations and new approaches to financing working capital. This now enables even small and medium-sized companies to proactively plan and manage working capital financing tailored to their individual needs on both sides of the balance sheet along their entire value chain.
The position of companies has also changed fundamentally in the selection of financing instruments. The traditional principal bank is no longer the sole contact when it comes to selecting financing instruments and providing capital. Companies just as often work with platform providers or service providers that offer innovative products for financing working capital and position themselves through flexibility, transparency, technology and broad access to liquidity. In combination with digitalization, this opens up access to financing models that until recently were predominantly the preserve of large companies.
The realization via platform approaches also allows the simple structuring of a best-fit financing offer from several financing partners with different strengths. Transparent trading with a large number of financing partners is possible in an uncomplicated manner; the market has become democratized.
To better understand this development and the current needs of financial decision-makers, we conducted an online survey together with cflox.