Find out how second lien lending may enable you to refinance higher cost debt and support a variety of other business purposes.
Second lien lending is becoming popular with both borrowers and lenders. It can be used to add needed debt to a company's capital structure as a way to refinance higher cost debt and for a variety of other business purposes.
Fraudsters frequently conduct extensive research to tailor their approach to match the target. Here are some tips for how to fight the threat.
Social engineering fraudsters frequently conduct extensive research on individuals or corporations to tailor their approach to match the target. Read about ways to identify your risks and fight back.
Outsourcing investment solutions can be a flexible alternative to in-house asset management and traditional consultant models.
Institutional investors need to achieve their investment objectives while managing risks and costs. A growing number are discovering that outsourcing all or some of their investment management functions can be the answer.
Economic statistics including jobs, consumer sentiment and Fed funds rates for September 23rd
The migration to chip cards and chip-enabled point-of-sale terminals in the United States has helped to mitigate fraud risk for cardholders, merchants and bank issuers.
Fraudsters are aware that they can’t counterfeit physical cards and use them in a chip environment anymore. As the online environment is less protected, card-not-present fraud is growing.
Global economic highlights as of October 15th
Insight into international trends for October 7th
Find out how the right foreign exchange strategy can mitigate risk and potentially help you grab opportunities.
Tariff announcements, whether real or threatened, have impacted the markets. Companies dealing in U.S. dollars should consider hedging strategies to manage the foreign exchange aspect of their international trade.
The idea of Medicare for All and a single-payer system is gaining momentum. What are the pros and cons of various approaches?
“Medicare for All” has one bill in the Senate and another in the House. Both propose a universal, single-payer model and would replace current employer and public coverage. Get the pros and cons of the various approaches.
Have you prepared for the day when you will pass your financial baton to a new generation of finance leaders? Start with the recruiting process.
Numerous business surveys demonstrate that many CFOs, especially in small to medium-sized businesses, have never developed a succession plan for their own job title.
Find out how a revolving line of credit can help manage the “cash eating” impact of fluctuating inventory needs.
Economic cycles, changes in demand and gains or losses of major customers affect inventory management. Find out how a revolving line of credit can help you deal with the “cash eating” impact of fluctuating inventory needs.
Insight into the Japanese economy
Economic statistics including jobs, consumer sentiment and Fed funds rates for October 7th
Insight into national and regional trends for July
Unitranche loans can provide attractive options and flexibility for middle-market borrowers. Are they right for your company?
Before unitranche debt emerged in the mid-2000s, middle-market borrowers did not have access to the same kind of innovative financing options as larger organizations. Now they do.
Opportunities are coming to the CFO beyond the traditional power of the purse.
There’s a shifting dynamic in the C-suite. The image of the chief financial officer (CFO) as a career grinder, rising from faceless accountant to the head of a sprawling but narrowly defined group of like-minded financial professionals, is fading.
How recurring revenue lending is helping SaaS companies achieve their bold visions.
Software as a Service (SaaS) companies took software out of shrink wrapped boxes and put it in the cloud. They've changed everything from how individuals do taxes to how massive supply chain partners work out multi-million dollar global purchases.
Insight into the Chinese economy
Economic reports and exchange rate forecasts for the current quarter
Getting to compliance may yield valuable data that can be used to guide future leasing and financing decisions. Here’s how.
New standards may require significant changes in internal systems, processes and controls surrounding leases. But you can also collect valuable data to guide future leasing and financing decisions.
How to benefit from ideas and insights that can make a material difference in company performance.
Turn to your banker for ways to improve your ability to recruit and retain the right employees, maintain access to capital, manage your cash cycle efficiently, mitigate risk, and maintain and grow your wealth.
Generation Z brings a unique worldview and distinctive characteristics to work.
For years, you've been hearing about Millennials and all the ways they're shaking up the workplace. But now that the oldest Millennials are nearing 40, there's another new kid in town: Generation Z, which includes those born in 1996 or after.
Equipment financing can deliver a low- to no-down payment while helping you preserve capital and manage cash flow.
Accumulating long term fixed assets by borrowing on your line of credit could be a mistake. Here’s how to maintain flexibility and access to capital when you need it most.
Today's workplace is a far cry from the traditional cubicle-filled office.
For commercial real estate developers, keeping up with the latest changes in office trends is crucial to competing in this booming industry. The key to meeting current development demands is understanding the several economic and demographic factors driving these new workplace needs.
Treasury professionals believe that strategic, cybersecurity and financial risks will challenge them over the next three years.
Four hundred treasury professionals believe that strategic, cybersecurity and financial risks will challenge them over the next three years. Get results of the 2019 AFP® Risk Survey.
Understand how banks use debt capacity analysis to help you develop the best financial structure for your company.
What's the best way to finance ongoing operations? To fund your growth and expansion plans? Understand how banks use debt capacity analysis to help you decide the best type of loan and overall financial structure for your company.
Economic reports and exchange rate forecasts from the previous quarter
Insight into national and regional trends for September
Find out how to acquire capital at favorable rates and amend a facility if necessary. Your banking relationship is key.
Find out how to position your company to seek capital at favorable rates and amend a facility should it become necessary. Open communication with your lender or lenders is key.
Operating lease payments can be increased or reduced to more easily match revenues and expenses when acquiring new equipment.
While the new accounting rules eliminate the off-balance sheet nature of operating leases, this type of lease structure can still offer advantages for assets and equipment ranging from computers to jets.
The equipment finance industry has undergone seismic change. Find out why that’s for the better.
Equipment finance started as a specialized service supporting manufacturer sales. But equipment needs don’t exist in silos. Focusing on the client and reaching beyond the boundaries of the internal organization makes sense today.
Canada is working towards payment systems that will be familiar to U.S. companies to further facilitate cross border transactions.
U.S. companies doing business in Canada will soon have the payment functionality that they are accustomed to at home. Here are 10 tips to help smooth the way for U.S. companies considering expansion in Canada.
CFOs need to build financial teams that support the skills needed to become key members of the management team.
Beyond the basics, the finance organization needs to be a driver in implementing new technology to better manage financial and business information throughout the organization.
Geese prices are flying high, while the labor market is tight for Lords-a-Leaping. French hens are holding steady.
PNC's quirky and highly anticipated Christmas Price Index predicts the seasonal price of the gifts listed in the "Twelve Day of Christmas." Find out what the 35th annual analysis says about swans, gold rings and turtledoves.
Tips for planning for the life cycle of your equipment.
Effectively managing your company's capital equipment program is closely tied to managing the long-term growth and profitability of your company. Obtaining the right equipment at the right time and managing its useful life in conjunction with the needs of the entire organization can make a big difference in your company's long-term financial performance.
Many payers find themselves well-situated to play a central role in solving healthcare's thorniest problems. Review the research.
The U.S. healthcare industry is under tremendous pressure to reduce costs while improving health outcomes. Payers are reimagining themselves for a more influential role in the evolving healthcare environment.
Do you take your car in for a state inspection or visit your doctor for an annual physical? Check out these reasons to give your finances the same kind of consistent attention.
Regular account or plan reviews can help you prioritize your goals and create an actionable plan to avoid potentially costly investment mistakes. With that in mind, here are five additional reasons you should review your financial situation annually.
Business succession planning is a dynamic process that can address a full spectrum of issues from your personal financial needs to your company’s long-term viability.
A strong planning framework will assess the health of your business, provide adequate planning time and equip you with the right information to develop a favorable transition or exit plan.
The Tax Cuts and Jobs Act made the most significant changes to business tax law in more than three decades.
The Tax Cuts and Jobs Act made the most significant changes to business tax law in more than three decades. Find out how several aspects of the new code specifically impact capital equipment acquisition and finance transactions.
Now that your taxes are out of the way, add these eight relatively easy tasks to your late-spring-cleaning list.
Once or twice a year, there are a few things that need to be done around your home. Change the batteries in the smoke detectors. Replace the furnace filters. And perform a handful of rather important financial tasks.
Covenants are additional terms in a loan agreement, typically used to set financial guidelines for a company.
Covenants are additional terms in a loan agreement, typically used to set financial guidelines for a company. Can you use your covenants to enhance the success of your business?
Monthly key market and economic observations
Taking the type of equipment, financial state of the business and other factors into account can deliver bottom-line benefits.
Are you spending enough time analyzing how to pay for that vital acquisition? Taking the type of equipment, financial state of the business and other factors into account can deliver bottom-line benefits.
With many banks still wary of investing in growing companies, ABL can provide strategic support with plans for growth, plus mergers, acquisitions and general refinancing.
With many banks still wary of investing in growing companies, ABL can help with short- and long-term capital needs. It offers companies strategic support with their plans for growth, plus mergers, acquisitions and general refinancing.
In some industries the skills gap is severe and there are few available job candidates.
Companies continue to struggle to find employees with the right skills for today’s jobs. The U.S. economy is at full employment, and in some industries the skills gap is severe and there are few available job candidates.
We provide some approaches to effectively and efficiently control your healthcare costs while still offering competitive and attractive benefits programs for your employees.
While both employers and employees typically benefit from lower premiums with an HSA-Qualified Health Plan, it is also important for employers to help employees prepare for their greater responsibility and decision-making roles in how their healthcare dollars are spent.
Are you exposed to future rate increases related to longer term debt? A forward starting swap can help to manage interest rate exposure.
As interest rates continue to rise, borrowers may be exposed to future rate increases related to longer term debt. A forward starting swap can help to manage interest rate exposure and align their interest rate risk with their risk tolerance.
For businesses struggling to compete on pay, there are other ways to attract and retain talent.
Companies continue to struggle to find employees with the right skills for today’s jobs. The U.S. economy is at full employment, and in some industries the skills gap is severe and there are few available job candidates.
Your lawyer, your accountant, your banker. Most companies know they need this trio of professionals in order to meet their business and financial goals.
Your lawyer, your accountant, your banker. Most companies know they need this trio of professionals in order to meet their business and financial goals. But too often, management turns to their banker only when they need financing or an upgrade to their treasury management tools.
We focus on three key areas for plan sponsors thinking about enhancing their pension risk outcomes.
2017 proved to be another volatile year for pension plan sponsors. The market environment combined with several regulatory updates may provide plan sponsors with some potential opportunities for 2018.
Strategists examine challenges and opportunities for the current quarter
Any company looking to do business in China needs to understand the differences and nuances of banking in China in order to structure banking relationships for success.
This whitepaper focuses on the Top 10 concepts and common banking practices that are applicable to companies conducting business in China. While this is not an exhaustive list, the aim is to provide an overview and some of the essential knowledge to get started as a treasury practitioner.
Thought leadership from PNC’s Advisory businesses
Strategists examine challenges and opportunities for January
Accounts receivable remains the lifeblood of most companies. Here are some of the latest techniques and technologies for improving working capital performance.
New technologies allow companies to better integrate payment streams. This allows the business to benefit from controls visibility and technology not only with traditional paper receipts through a traditional lockbox but also electronic payments through a virtual lockbox or an electronic bill presentment and payment system.
The price of gold rings and lords a leapin’ increased this year as did the pear tree – but not the partridge. Visit pncchristmaspriceindex.com for fun and educational features.
The PNC Christmas Price Index predicts True Loves will be on their merry way to a more robust and satisfying holiday shopping season this year. To purchase the gifts included in the classic holiday song “The 12 Days of Christmas,” it will only cost 0.6 percent more than in 2016, according to the 34th annual holiday economic analysis.
Is it better to reward star performers on a team, or the entire team’s efforts?
Companies want their work teams to be effective and achievement-oriented. Well-functioning teams can lead to faster completion of goals and successful wins, as well as foster company loyalty, positive morale and higher productivity.
Strategists examine challenges and opportunities for February
More than $8.72 trillion has been invested in the United States in Responsible Investing strategies. Learn best practices.
The PNC Institutional Advisory Solutions® Investment Strategy Team has formalized its views on responsible investing for institutional investors. This summary discusses those views and key considerations for asset owners as they evaluate integrating responsible investing into the management of their portfolios.
The convergence of mobile technology and digital commerce is leading to real time payment innovation around the world.
The internal experience can help you find and retain qualified candidates.
The U.S. unemployment rate is at its lowest level since 2000, and the shortage of skilled workers has seldom been so severe. As baby boomers continue to retire, companies are struggling to find workers to replace them. ManpowerGroup found that 40% of global companies report having difficulty finding qualified candidates.
Insight into the Indian economy
Insight into the Canadian economy
Canada is back on track. After real GDP growth of less than 2% in 2015 and 2016, it looks set to pick up to around 2.5% this year and next. A Bank of Canada survey showed the share of businesses planning to increase capital spending was nearly the largest in a decade.
When you plan for the cost of new equipment, don’t forget to plan for the significant portion of the total equipment expense called “soft costs.”
Finding a lender with a strong specialty in equipment financing and who understands more than just the invoice amount is key. As long as soft costs stay within certain parameters of the total investment, you can fold them into your affordable monthly equipment payment, preserving your cash for more important needs.
Insight into the Brazilian economy
Insight into the Australian economy
Check fraud tops the list of fraud methods criminals use, according to the latest AFP Payments Fraud and Control Survey. Why is this latest survey especially worrying?
75% of organizations experienced check fraud in 2016. 74% reported that their organizations were exposed to business email compromise. Nearly half of survey respondents reported that the incidents of fraud attempts increased in 2016.
Between 2009 and 2015, commercial card volume almost doubled, as more companies switched from checks to electronic payments.
However, the rate of growth in commercial card volume has been slowing in recent years and fell to just 8% in 2015. This slowdown can be attributed to a number of factors, including organizational inertia, reluctance to overhaul legacy payment systems, or the belief that suppliers will not accept electronic payments.
Noncompete agreements can dissuade employees from going to work for a competitor.
Proprietary knowledge is critical to business success and companies go to great lengths to protect intellectual property and trade secrets. For instance, many companies require employees to sign noncompete agreements upon their hiring to protect intellectual property from exiting the firm if the employee decides to leave.
PNC’s economists are predicting increases in 2017 and 2018. A new administration in Washington and political changes in Europe may also affect interest rates.
What does the future hold for interest rates? How will the new interest rate environment affect your borrowing strategies and how can you mitigate the risks? We asked Tina Hwang from PNC’s Capital Markets group to weigh in.
Distributed ledger technologies record transactions in a decentralized network. The record of each transaction is shared across a network of computers.
While FinTech firms are helping to accelerate the pace of technological advancement within the industry, banks are investing in new technologies to provide better/faster/cheaper and more secure services to their client base.
Long a trusted resource for financial institutions, SWIFT also supports corporate treasurers as they face expanding roles and shrinking resources.
SWIFT provides messaging standards that define a common means of structuring data for a broad range of financial purposes, from cash management and foreign exchange to trade finance. Additionally, SWIFT provides a highly secure proprietary communication platform and products such as SWIFT FileAct, which supports the exchange of bulk files between corporates and banks.
Operations and supply chains can be disrupted any time from anywhere in the world.
Business continuity and disaster recovery plans can serve as the first response in the wake of a disruptive event. A well-documented business continuity plan can help organizations anticipate likely scenarios, outline response actions and react rapidly, thus increasing the likelihood of resuming normal operations quickly and with the least interruption.
Some of the considerations for U.S. companies doing business in Canada and the industries with the most potential; manufacturing, agriculture, forestry, infrastructure and energy.
Although Canada offers opportunity in most industries, there are some that have unique and specific potential today. Similarities between industries across the border, foreign exchange advantages and simply the growth potential of each sector within Canada are among them.
The controls that come with the latest commercial payment methods enable CFOs, controllers and program administrators to exercise greater control over payment systems and practices.
The potential benefits associated with strong controls can be significant in terms of cost savings and peace of mind. Conversely, failure to implement appropriate payment controls can subject an organization to unnecessary financial risk.
Outsourcing enables company executives to remain focused on their core businesses.
Outsourcing remains attractive for many companies because it offers several advantages in addition to cost savings, particularly in addressing talent gaps and shortages, exploiting Big Data capabilities and implementing new technology quickly. Yet many companies struggle to transition their IT and noncore operations effectively to an outsourcing model.
If you are one of the growing number of companies doing business in China, recent moves to liberalize its currency can have substantial
bottom-line benefits for you.
Although U.S. companies have historically believed that negotiating international agreements in USD insulates them from exposure to currency volatility, it also puts them at a competitive disadvantage compared to companies that transact in local currency.
Changes to the NACHA Operating Rules will allow ACH participants to speed delivery of transactions that are more time sensitive than traditional ACH transactions.
Employers who want more flexibility in timing payroll, insurance carriers committed to fast payout of claims and reimbursements, individuals who need to get money to family members quickly, and billers wanting to offer a same day bill payment option are just a few of the groups looking forward to Same Day ACH.
Insight into the Mexican economy
Insight into European zone trends
Workplace wellness programs: What's the real ROI?
Employee wellness programs are a $6 billion industry in the United States. These programs have been touted for helping employees improve their health and prevent disease while lowering healthcare costs. Approximately 50% of all companies with 50 or more employees now offer wellness programs.
Indirect taxes are based on trade flows and transactions.
Because each country uses a unique mix of indirect taxes, companies are challenged to stay on top of tax requirements and liabilities. Government tax administrators may change their policies and rates very quickly in response to economic needs, and they expect international companies to respond immediately or face penalties.
Mobile wallet is a consumer-to-business payment technology that has become better known since the release of Apple’s iPhone 6/6 Plus and the Apple Pay™ mobile wallet.
A combination of the desire to reduce card fraud and the popularity of smartphones has led to the emergence of “mobile wallet” solutions for point-of-sale (POS) payments. However, the payments industry remains in the midst of the “mobile wallet wars,” as market entrants battle it out to see which technology approach and provider or providers will carry the day.
Companies are evaluating the impact of increased interest rates on global trade.
The U.S. dollar strengthened throughout 2015 in anticipation of higher interest rates and stronger economic growth. Advanced and stable economies such as Europe, Japan and India welcomed the Fed’s move, but many emerging markets are struggling with the impact of the rate hike.
Back to the Future: Global market unease
Global markets have had a tumultuous start thus far in the first few trading days of 2016, with a number of factors affecting market sentiment, triggering global equity markets to sell off. In the United States, the S&P 500® had its sixth - worst first trading day of the new year performance on Monday since 1928 (-1.53%).
Insight into the British economy
The TPP trade deal is the largest in history and covers 40% of the world economy.
TPP nations pose stiff tariffs and export barriers on U.S. goods and services. Passage of the TPP would phase out these barriers for more than 11,000 categories. Critics fear increased outsourcing of U.S. jobs and threats to legal protections. The hope is that passage of the TPP will improve U.S. competitiveness and help develop new markets.
Integrated teams of in-house staff and freelancers can work well together.
Many employers were initially suspicious of workers’ requests for greater flexibility, but the bet has paid off. A recent study found that some form of telework is offered by 88% of surveyed organizations, 82% offer flexible work hours, and 81% support part-time schedules.
Recent worldwide sluggish growth has tempered enthusiasm for global connectivity.
As an after-effect of the global recession, world trade is expected to increase only 3.3% in 2015 and 4.0% in 2016, still below the annual average growth of 5.1% since 1990. Prolonged sluggish growth in GDP, especially in the high-income countries, has been cited as the main reason for this slow recovery in trade.
The goal is to create “smart factories” that improve productivity and profitability.
Manufacturers of all sizes, all over the world, are being affected by this paradigm shift. Myriad stakeholders — manufacturers, suppliers, technology companies, universities, government agencies and laboratories — are working to seamlessly link intelligent machines, advanced analytics and workers in the next generation of manufacturing processes.
From soaring market volatility to an increasingly complex regulatory environment, the challenges confronting institutional asset owners have never been greater.
It comes as no surprise that many pension plans, endowments, foundations and other investors are searching for new ways to achieve their investment objectives while controlling risk and keeping costs down.
Whether you use EFT or Virtual Cards, electronic payments can get funds to providers quicker, at a lower cost and with less risk than paper checks.
Like many other sectors, the healthcare industry is continually looking for ways to improve efficiency and productivity. Electronic payments can support these goals by reducing costs, improving payments accuracy (resulting in fewer disputes) and optimizing working capital.
Business leaders must be flexible and responsive in navigating increased volatility while remaining focused on their organizations’ long-term
With change accelerating faster than ever before in human history, four major global disruptions are occurring that will have significant impact on businesses. Although these trends have been well-documented, what is not well-understood is the full extent of their impact or the collective effect of these trends as they collide and merge.
The explosion of the Internet, social media, technology devices and apps is creating a tsunami of data. The challenge for businesses is how to make the best use of the information.
Big data is being used to better understand consumer habits, target marketing campaigns, improve operational efficiency, lower costs, and reduce risk. International Data Corporation (IDC), a global provider of market intelligence and information technology advisory services, estimates that the global big data and analytics market will reach $125 billion in 2015.
With the growing adoption of electronic payments and emergence of new payment methods, the payments landscape will continue in its evolution over the next few years.
New technologies will play an increasingly important role in the management of payments. Trends include the continued decline of paperbased payments, the emergence of new payment methods, and the growth of corporate financial management technology.
Private equity firms have capital and corporate buyers have access to low-cost funding. It’s a sellers’ market for middle-market companies as baby boomer owners get ready to retire.
The market for middle-market acquisitions remains hot by historical measures, although it’s showing signs of cooling. The Lead Left, a capital markets newsletter focused on the middle-market space, reports that private equity funding fell in 2014 from the year before. Assuming the critical issues around monetizing a business have been addressed, why wait any longer?
The discipline that guided companies through leaner times should remain central to prudent T&E expense control as business travel picks up in response to increased sales.
With business activity increasing, it can be easy to let cost containment policies slacken. This is especially true for travel and entertainment expense policies, as business travel picks up in response to increased sales, hiring and training activities.
Integrated payables or “payables outsourcing” enables a business to send instructions for initiating multiple payment types to its bank in a single, consolidated file.
Integrated payables allows for end-to-end automation of the payables process. You can receive back from your bank acknowledgments, confirmations and information reporting online or via secure file transmission. Integrated payables also facilitate migration from paper check disbursements to electronic payment alternatives.
Company growth often hinges on having the right talent in place and building bench strength. Many companies have found it smart to develop leaders at all levels of the organization.
Millennials are much more likely to job hop than Baby Boomers, who changed jobs infrequently throughout their careers. On average, Millennials change jobs every two years. As a result, moving forward, a human capital strategy that engages, recognizes, develops and retains talented employees will be critical to business success.
U.S. employers are having a hard time finding qualified workers. Many jobs now require technical knowledge and specialized skills that prospective employees simply don’t have.
Unfilled positions can be costly. The impact ripples through to lost production, poor customer service, delivery time delays, inferior work quality, low morale and higher turnover among those carrying heavier workloads. Business leaders and academics are rallying to address the skills gap with government program and a renewed focus on workplace development.
The business model for healthcare is reflecting changes driven by the Affordable Care Act (ACA), emphasis on cost containment, value, increased innovation and new technologies.
New care delivery options, robotics, remote monitoring, the use of big data, value-based models, the rise of health consumerism and an evolving healthcare workforce will transform the face of healthcare in the next 10 to 15 years.
Over the past eight years, we’ve seen more than a doubling in U.S. commercial card usage, which includes purchasing and corporate cards, along with small business card spending.
Growing business confidence and the improved outlook for the economy has led to increased travel and entertainment budgets to support traveling employees and sales executives. As these budgets grow, companies such as yours need to closely control their increased spending — another one of the many reasons for implementing comprehensive corporate card platforms.
Many companies are interested in realizing the potential bottom-line benefits of payables automation but are unsure of how to introduce it. These 10 steps can help.
Among the steps companies can take toward payables automation are reaching out to their bank's treasury management officer, crafting a strategy, obtaining active buy-in from senior management, designating an executive sponsor and forming a payables auotmation project team with representation from various units.
Canada’s Office of the Superintendent of Financial Institutions has granted PNC Bank Canada Branch (“PNC Canada”) a full-service branch license.
Canada is the United States' largest export market and the second largest source of imports after China. Companies doing business in Canada face a number of challenges as they deal with customs documentation and adapt their operations for sales tax accounting, procurement procedures and even packaging and labeling. PNC can help.
In navigating through the sluggish growth environment of recent years, U.S. companies have increasingly focused on improving efficiency throughout their organizations.
Many companies have found significant opportunities for efficiency gains by introducing automation into their accounts payable opertaions. In addition to helping with efficiency, automation can offer a number of other benefits, including reduced costs and greater visibility into their pending financial obligations.
One of the legacies of the financial crisis is that companies are increasingly focused on managing working capital. Supply chain finance programs can boost working capital metrics.
With supply chain finance, a buyer can enable its supplier to get paid faster while receiving financing from the buyer’s bank at the buyer’s lower cost of funding. In turn, the buyer can negotiate extended terms or a discount on the invoice. The buyer’s ability to extend terms with the supplier can help drive working capital metrics to new heights.
Exchange rate volatility exists between most currencies. By transacting in the local currency, companies are able to manage exchange rate risk, effectively reducing potential premiums.
Over the past two decades, the U.S. economy has become increasingly linked to global markets, both for sourcing and sales. Historically, U.S. companies tended to prefer to negotiate all international agreements in U.S. dollars. However, they may increasingly placed themselves at a competitive disadvantage by doing so.
More and more companies are exploring the benefits of an asset-based solution. It works especially well in industries with tighter operating margins.
With liquidity at a premium, asset-based lending can be a particularly attractive alternative to a traditional bank loan or, to having to raise equity, which could dilute ownership. It can help middle-market companies move their business forward.
As international business grows more important to U.S. companies, it's vital to recognize that import and export activities are heavily regulated by the U.S. Government.
If you are conducting international business, if you are engaging in new types of transactions, if you are doing business with new entities or in new geographic regions, you may receive questions from government entities or your financial institution. Everyone involved is responsible for compliance and could face penalties or fines for noncompliance.
In addition to expanded opportunity, international investing helps reduce portfolio risk through diversification. Allocations to non-U.S. stocks can reduce portfolio volatility.
International equity plays a critical role in a well-balanced portfolio. International stocks are a large and growing share of the global investment universe and offer investors the potential to capitalize on faster long-term growth trends abroad. There are also investment opportunities in industry segments that are dominated by non-U.S. companies.
Professionals such as physicians, attorneys and business owners are at risk for liability and litigation. Those who are assumed to have deep pockets can become high profile targets.
Asset protection planning is an important part of a comprehensive estate and financial plan addressing an individual’s risks now and in the future. Proper asset protection planning requires time, consideration and knowledge to fully integrate the planning holistically and effectively.
Your financial well-being, like your health, can benefit from regular checkups — but where to start? Here is a step-by-step plan to improve your financial fitness.
Pay yourself first. Create a budget. Pay down credit card debt. Prepare a personal net worth statement. Review your estate planning documents. Rebalance your investment portfolio. Review your insurance and your tax plan and seek guidance from a qualified wealth management professional to improve your financial wel being.
Most businesses need both disaster planning and business resiliency strategies, but resilency can come into play almost every day.
Business resiliency plans ensure uninterrupted processing for essential functions. Most business interruptions fall into one or more of these 5 categories: hardware, facilities, network/telecom, software and people. With a strong business resiliency plan, you can be prepared and avoid the difficulties of recovery without one.
Doing business with Brazil, Russia, India, China and South Africa can be challenging for companies accustomed to the certainties of mainstream currencies.
Although the BRICS proactively promote international business, their governments remain concerned that any sudden inflow or outflow of money could de-stabilize their economies. As a result, they have implemented restrictions on international transactions. Trade and capital payments are regulated and certain hedging practices are prohibited.
Business owners and corporate treasurers are reviewing their projections for funded debt levels over the next several years to manage their mix of fixed and floating rate debt.
A hedging solution called the yield curve efficient interest rate swap closely follows the expected future path of interest rates. The frequency and timing of the increases can be tailored to meet specific cash flow needs.
Companies are beginning to recognize the importance of having an investment policy that provides clear direction on how investments will be managed and how much risk is acceptable.
A solid investment policy include formalized forecasting and contingency plans to prepare key decision-makers for unexpected events. Contingency plans should include a scenario analysis that details events of varying risk or magnitude and how the company will react. For example — divest, stay the course, or become more conservative.
Companies are continually looking for ways to stay ahead of the competition. And yet many of them overlook the benefits of regular interaction with their banking team.
It's a good idea to meet with your banker and talk through upcoming expenditures, including capital expenses. Get to know your bank and the people on your banking team. Regular meetings can help your banker capture a more accurate picture of your business and respond more quickly when needs and opportunities arise.
Many companies that had previously elected to hedge with an interest rate swap will be faced with early termination or make whole of their current interest rate swap.
In the face of moderate economic growth in the United States and overseas, short and long-term interest rates remain at historically low levels. There are many flexible and creative hedging solutions available. You should review the expected duration of your debt portfolio and consult with your capital markets profession to discuss your options.
Canada is a vitally important market for U.S. companies. The United States sells more goods to Canada than to all 27 countries of the European Union combined.
The ease and longevity of our relationship with Canada can make us forget that the enormous territory to the north is not just an extension of the United States. Like any other global market, Canada has its own customs, laws, rules, and regulations that require just as much attention and insight as those of our more distant trading partners.
Does your company have a well-thought-out investment policy? Does your policy have clear, measurable objectives? Has it been written down and shared with the appropriate team?
Putting your investment policy in writing is the foundation of effective investing. Your policy should provide benchmarks to help you evaluate how well it is working and what changes may be needed to make it more effective. While every company is different several elements should be part of every policy.
When you contemplate the sale of your business, market timing, economic considerations, competitive trends, tax strategies and future capital requirements should be taken into account.
Merger and acquisition ("M&A") transactions can raise a series of important considerations that significantly impact business owners. When is the right time for an M&A transaction? What steps are required? When selling a company, how can business owners achieve liquidity and maximize value while still looking after the best interests of their company?
The ability to offer your customers and prospects financing for the purchases they make from you at competitive rates can help you meeting important business goals.
Using financing as a core sales strategy can help you sell more of your product to more people and keep your customers longer. You can close deals faster, include more product in the sale and get paid faster. Vendor finance programs also deliver significant benefits to your customers. They can get financing more quickly at favorable rates.
The wrong strategy, the wrong partner and poor management can knock you off track in China. Learn about challenges in the operating environment.
Often companies initially focus their strategy for China on the basic how to’s: How do I start a company? How do I find an agent? How do I open a bank account? These are important questions. But these are not the issues that can inhibit your success in China.
Biases are the basis for cognitive and emotional errors when we apply them in financial markets and they often result in financial losses.
Humans have an amazing capacity for reasoning, memory, action, feelings and emotions. But capacity alone does not ensure that we will develop the proper biases to employ every day in predictive scenarios. In some cases, these biases come hardwired in our brains and work against us when it comes to predicting market movements.
Equipment is just as important to the success of your company as intellectual capital and management strength. Are you leveraging its value to deliver maximum benefits?
Many companies have minimized or frozen spending and investments. However, the pressure to stay competitive in the global marketplace makes it unrealistic to hold off on technology and operations improvements for the long term. It's time to determine what initial investments make the most sense and how to finance them. We take a look at some creative approaches.
Securitization allows a company to monetize its trade receivables by legally isolating the assets from the bankruptcy estate of the company originating them.
As attractive revolvers mature over the next four years, there can be a liquidity gap that could hamper a company’s ability to finance working capital needs and pursue growth opportunities. Securitization can close that gap. It has enabled many companies to increase liquidity, lower financing costs and diversify their overall capital structure.
Industrial Revenue Bonds
Public sector financing can support private development projects that will fuel economic growth in communities. The lower interest rates and longer payment terms characteristic of programs such as tax-exempt Industrial Revenue Bonds (IRBs) can be used to finance growth.
Many companies are finding that an asset-based structure provides the liquidity necessary to quickly execute a buyout or facilitate a turnaround plan.
In the past, asset-based financing was viewed as the best option for companies with high risk profiles. Today, the rules about what type of company can benefit from this strategy are changing. And more and more are embracing the flexibility that asset-based financing can offer.
Smart managers are sweetening their employee benefits package with additional perks to help their company stay competitive in the market for good employees.
Essentially, a workplace banking program is a package of discounted financial services and special benefits your company can offer to employees as part of your overall benefits package. Typically, there is no cost to participate, only rewards for both your company and your employees.
While banks today still consider traditional criteria like cash flow, leverage, equity and collateral, the experience and integrity of the management team is growing in importance.
Some managers who find themselves in challenging circumstances may be reluctant to talk with their bankers, fearing that relaying bad news might close off credit options. Successful companies are open and transparent with their banks, through good times and bad.