Transitioning to Advanced Working Capital Solutions for Global Business Expansion

As companies navigate the expansion of their global footprint, their financial requirements evolve. These shifts often necessitate a transition from traditional debt-based trade financeto more sophisticated working capital solutions that facilitate smoother and faster transactions with enhanced security and transparency.

Consider the case of payables finance and receivables finance: these tools are designed to optimize cash conversion cycles and enable businesses to better manage their liquidity, potentially reducing balance sheet leverage through improved cash flow administration. Over the past decade, major corporations have extensively adopted supply chn finance SCF programs for payables finance to enhance working capital management-a tr that is now increasingly observed among mid-sized firms pursuing global growth strategies.

Shrey Daga, Citi's Global Head of Trade and Working Capital Solutions for Commercial Banking clients, notes a notable increase in demand for off-balance sheet financing. This shift has been particularly pronounced in regions like North America and Western Europe, he explns. We are witnessing similar trs among mid-sized firms that are expanding internationally, even in emerging markets.

Citi recognizes the dynamic nature of these companies' financial needs and offers a digital platform called CitiDirect to consolidate supply chn data, centralize treasury operations, and oversee banking solutions.

This integrated approach simplifies processes for businesses by enabling them to manage everyday interactions with Citi via a single, streamlined platform. Our eLoans and SCF functionalities facilitate seamless integration, says Daga. A buyer can evaluate a purchase order online, and funds are provided to the supplier on the same platform.

Citi's global footprint spans 95 countries and supports transactions in 144 currencies, providing clients with data-driven insights that inform funding decision-making.

In 2023, Citi initiated the rollout of its CitiDirect Commercial BankingSM platform for commercial banking clients. This unified digital solution brings together a comprehensive view of cash, trade, and working capital services, including eLoans, foreign exchange FX, servicing, onboarding processes, and more.

Citi has significantly invested in technology to enhance and simplify offerings, focusing on streamlining processes and providing clients with real-time visibility into their banking relationships. Innovations such as optical character recognition streamline document processing while solutions like Citi Digital Bill reduce reliance on traditional paper-based methods.

Digital transformation is reshaping the global trade landscape as companies seize new opportunities in business expansion and finance, says Daga. Citi anticipates this tr by leveraging technology to support our clients' evolving needs.

Case Study: Wallbox

Wallbox, headquartered in Spn, is a leading provider of electric vehicle charging solutions and energy management systems for EVs. The company offers smart charging systems that enable seamless communication between vehicles, the grid, and infrastructure.

The eLoan module of CitiDirect provided Wallbox with just the self-service tool it was looking for-offering full visibility into loan status, including interest rate fluctuations and credit line avlability through an interactive dashboard. All digital loan drawdowns were initiated via this platform.

By adopting a single-platform solution, Wallbox achieved digitization, risk mitigation, process optimization, and effective working capital management to meet its core financial requirements.

Key Takeaways:

• Citi's eLoan feature allows for seamless online application and access to working capital across multiple jurisdictions.

• Enhanced user experience with real-time loan information tracking and interest rate monitoring on an intuitive dashboard.

• Automatic digitalization of loan drawdown processes streamlines operations.

Tags: Citi, Fatr, Shrey Daga
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