31 2014 - Techniques for Slashing DSO (Days Sales Outstanding)

Description:
Much ado is made of cash management and collection techniques for trimming a few days off of company DSO. In many companies, it is important enough that bonuses are based on shortening DSO. In this session, participants will learn about trade finance techniquesfor negotiating and structuringcompany sales in that allow a company to simultaneously increase sales, limit risks, improve cash flow, and slash DSO, potentially to zero.
Counterintuitively, the trick involves offering customers longer payment terms. In exchange, the customers are required to employ structures that enable sale of the receivables to a financial institution without recourse (off-balance-sheet). In most cases, the benefits to the customers are great enough that they can be expected to pay the financing costs.Examine tools that enable otherwise unattractive transactions by limiting payment risks and tapping into programs that are specifically designed to cut DSOthrough off-balance-sheet financing. This session explains the motives of the seller, the buyer, and financial institutions and then compares structures in order that attendees can craft appropriate programs for themselves and their customers.
Agenda:
Why customers want financing from their suppliers
Impact of offering longer payment terms
Benefits of selling receivables
Risk reduction
DSO reduction
Balance sheet improvement
cash flow improvement
Increased sales
Arbitrage opportunity
Building blocks of trade finance
“True sale” accounting standards
Negotiable instruments
Letters of credit
Creditinsurance
Export assistance programs
Multibuyer programs
Sale of insured receivables
Securitization of trade receivables
Single-buyer programs
Forfaiting
Usance and standby letters of credit
Medium-term export credit guarantees
Supply-chain finance
Why Should you Attend:
Differentiate among various trade-facilitating and credit-enhancing tools (e.g., supply-chain finance, letters of credit, forfaiting, securitizations, credit insurance)
Learn how Treasury, Sales, and Credit can work in unison to increase balance sheet strength, improve competitiveness, and reduce risk
Develop methodsforgenerating new revenues from customers in foreign markets without taking undue risks
Understand what motivates customers to engage in supply-chain finance programs and how to negotiate for mutual benefits
Identify opportunities for arbitraging interest rates
Objectives of the Presentation:
“True Sale” Accounting Standards
Negotiable Instruments Law
Using Credit Insurance
Using Letters of Credit
Interest rate arbitrage
Forfaiting
Supply-Chain Finance
Securitization of Receivables
Sources of Export Funding
Who can Benefit:
Treasury Department Employees
Credit and Collection Managers
Companypresidents and CFOs
Companyvice Presidents
Business Owners
Sales Managers
Attorneys
Insurance Professionals
Lending Professionals
Accountants
Bankers
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