A conceptual framework for corporate liquidity management is a set of principles and guidelines that outline how a company should manage its cash and other financial resources to ensure that it has sufficient liquidity to meet its financial obligations as they come due. Here are a few key components that might be included in a conceptual framework for corporate liquidity management:
- Cash flow forecasting: This involves predicting how much cash the company will generate and how much it will need to meet its financial obligations in the future.
- Cash balance management: This involves deciding how much cash the company should keep on hand to meet its short-term needs, as well as how to invest any excess cash to maximize returns.
- Debt management: This involves deciding how much debt the company should take on, as well as how to structure its debt to minimize risk and optimize financing costs.
- Risk management: This involves identifying and managing the risks that could affect the company's liquidity, such as market risk, credit risk, and operational risk.
- Corporate governance: This involves ensuring that the company's liquidity management processes are transparent, accountable, and aligned with the company's overall strategic goals.
- By following a conceptual framework for corporate liquidity management, a company can help ensure that it has sufficient liquidity to meet its financial obligations and achieve its business objectives, and provides the possibility to will be able to optimize the asset site of its balance sheet, by:
- Optimizing working capital using PRI® CrediSoft;
- Monetizing open account receivables through PRI® inside.
Qube Account Receivables Finance Added Value
PRI® inside Platform
The fully automated solution for account receivables (or AR) financing by PRI® inside offers:
- Daily (re)purchase of invoices
- Daily portfolio analysis and portfolio review
- Daily notification of purchased receivables
- Daily settlement of credit-notes and uncollectable invoices
- Daily liquidity calculations
- Full ‘track and trace’ solution, all required steps are logged and documented
- Fully automated data-exchange after one-off implementation of data-exchange protocol
- Daily funding and settlement towards participating companies & institutions
- Fully integrated risk, operational and legal framework
Set-up for daily settlement routine is defined on automated interface between client’s financial and operational systems and Qube’s PRI® inside. Interface will be implemented and supported by Qube Servicing.
After go-live Qube’s clients will have access to all daily settlement reports with automated instructions for payments if required, resulting in a very limited work-load for clients on an ongoing basis.
In addition, PRI® CrediSoft is a proprietary receivables credit & collection add-on application supporting credit management processes serviced by Qube Servicing. The application manages and integrates collection workflows and tasks and is fully integrated with PRI® inside.
PRI® inside has been developed based on the in-depth experience with receivables finance with the objective to have a fully front-to-backend automated receivables finance platform based on historic and actual data which to provide full insight & transparency which will be evidenced by demo on request.