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Author: nsilverman

  • Why Forward-Thinking Banks Are Partnering to Lead the Next Era of Working Capital Innovation

    Why Forward-Thinking Banks Are Partnering to Lead the Next Era of Working Capital Innovation

    The role of banks in working capital is evolving. No longer confined to traditional financing, future-proofed banks are stepping into a broader, more strategic role – one that positions them as key members of a Connected Capital ecosystem.

    This ecosystem isn’t just about funding. It’s about collaboration, technology and real-time liquidity, delivered through partnerships that extend the bank’s capabilities and deepen its relevance to corporate clients.

    One of the most transformative moves a bank can make today? Partnering with integrated working capital experts like GSCF to deliver innovative working capital solutions that go beyond the balance sheet.

    Why the Ecosystem Matters

    Corporate clients are navigating increasingly complex supply chains, volatile demand cycles and rising pressure to optimize cash. They need more than credit – they need capital connectivity across their supply chain.

    A Connected Capital ecosystem enables:

    • Real-time liquidity across the supply chain of suppliers and buyers
    • Multi-party collaboration between platforms, banks, asset managers, suppliers and buyers
    • Integrated data flows that drive smarter decisions, increase global visibility and reduce risk

    Banks that plug into this ecosystem become more than lenders – they become growth enablers.

    The GSCF Partnership: A Strategic Gateway

    GSCF’s servicing platform and alternative capital solutions are purpose-built for multi-funder, multi-jurisdictional working capital programs. By partnering with GSCF, banks can:

    • Extend their reach into structured receivables and payables
    • Accelerate deployment of working capital programs without building new infrastructure
    • Retain client relationships while offering off-balance sheet solutions that complement core banking products

    This partnership model allows banks to stay at the center of the client relationship while leveraging GSCF’s technology, Blackstone-backed funding and expertise to deliver scalable, flexible solutions.

    The Strategic Advantage for Banks

    By participating in a Connected Capital ecosystem, banks can:

    • Increase wallet share by addressing broader liquidity needs
    • Strengthen client retention through embedded, value-added services
    • Unlock new revenue streams from program structuring and servicing
    • Position themselves as innovators in a space traditionally dominated by FinTechs

    More importantly, they help their clients build resilient supply chains and free up trapped capital – all without compromising their own risk frameworks.

    Leading the Future of Working Capital

    The future belongs to banks that think beyond products and embrace a platform with complementary alternative capital solutions. By partnering with GSCF and participating in a Connected Capital ecosystem, banks can lead the next wave of innovation in working capital – delivering liquidity, agility and strategic value at scale.

  • Navigating the Ripple Effects of First Brands’ Bankruptcy

    Navigating the Ripple Effects of First Brands’ Bankruptcy

    The recent Bloomberg report that BlackRock is seeking to redeem cash from the Point Bonita fund – following First Brands Group’s bankruptcy – marks a pivotal moment for trade finance and working capital funders. Here’s what’s happening, and why it matters:

    1. Forced Liquidity Events and Program Terminations

    When a major investor like BlackRock requests redemption, fund managers face pressure to return cash quickly. If a significant portion of the fund (in this case, 25% exposed to First Brands) stops generating returns, managers may be forced to gate redemptions, unwind programs or seek new partners to stabilize their portfolios.

    2. Collateral Complexity and Credit Risk

    Point Bonita’s $3 billion portfolio included receivables tied to First Brands, with $715 million invested in those receivables. The bankruptcy triggered a halt in payments, and now advisers are investigating whether receivables were pledged as collateral more than once – a situation that could further complicate recovery and risk management.

    3. Ripple Effects for Corporates

    For corporates relying on these funders, the risk isn’t just the bankruptcy itself,it’s the potential for sudden liquidity gaps if funders pull back or terminate programs. This can disrupt AR/AP facilities and create operational headaches.

    4. The Case for Funder Resiliency

    GSCF’s approach stands in contrast. With zero exposure to First Brands and a funding base backed by Blackstone, our partners benefit from consistent liquidity and disciplined risk management –even in turbulent markets.

    5. Strategic Options for Funders

    • Terminate programs to return cash.
    • Gate redemptions to buy time.
    • Partner with new entities to maintain funding.
    • Consider selling back books at par or a discount.

    6. Call to Action

    Corporates should proactively assess their funder’s risk management and contingency plans. If your funder is exposed to First Brands, now is the time to explore alternatives that offer stability and transparency.

    Conclusion:
    The First Brands situation is a wake-up call for the industry. Funder resiliency isn’t just a buzzword, it’s a necessity. At GSCF, we’re ready to help you navigate these challenges and secure your working capital for the long term.

  • Why Funder Resiliency Matters

    Why Funder Resiliency Matters

    In times like these, funder resiliency matters.

    Recent headlines around First Brands Group’s bankruptcy are a reminder that not all working capital funders manage risk the same way. For corporates, the practical risk isn’t the headline; it’s the possibility that a funder suddenly pulls back, causing an unexpected liquidity gap.

    At GSCF, we’re set up to be a durable, consistent partner backed by funds managed by Blackstone. With more than three decades of cycle‑tested experience and a disciplined approach to underwriting, we’ve supported partners with minimal losses and consistent service. Our platform, processes and stable funding base allow our partners to count on us – not just when markets are calm, but especially when they aren’t.

    We do not have exposure to First Brands and are unaffected by its bankruptcy. Our focus remains exactly where it should be: providing our clients with consistent liquidity.

    If your organization is concerned that a current funder may reevaluate, reduce, or exit your working capital program due to the losses they experienced on First Brands, we can help. GSCF can step in quickly to stabilize AR/AP facilities, maintain servicing quality and provide resilient funding options.

    Let’s talk about keeping your working capital solution uninterrupted, today and for the long term.

  • Working Capital Control and Flexibility: When to Consider an External Partner

    Working Capital Control and Flexibility: When to Consider an External Partner

    Many companies default to relying solely on their house bank for working capital needs. It feels familiar, fits into established processes and builds on existing relationships. But in a volatile market, that single-channel approach can limit your flexibility, slow your response time, and keep you from unlocking better terms. 

    The question is not whether a bank relationship is valuable. It is. The question is whether it is enough to support your strategic working capital goals in today’s environment. Here are six factors to evaluate when deciding if it is time to add an alternative capital partner to your strategy. 

    1. Pricing and Terms 

    If a provider can offer more competitive pricing or extended payment terms, even small improvements can deliver a meaningful boost to liquidity or margin. Compare your current terms with what is available in the market. 

    2. Speed to Capital 

    In high-pressure situations, timing is everything. Some providers can make funds available in as little as 24 to 48 hours, allowing you to seize opportunities or address challenges before they escalate. Assess onboarding speed and funding responsiveness, not just interest rates. 

    3. Operational Efficiency 

    Your capital source should make your processes easier, not harder. Evaluate how intuitive a provider’s platform is and whether it integrates with your existing systems. Faster invoice loading, approvals and funding cycles can significantly reduce internal workload. 

    4. Relationship Dynamics 

    If you have strong banking relationships and broad access to credit, an external partner can be a supplemental tool for specific needs. If you do not, an alternative capital provider may give you faster execution, more tailored solutions and new funding avenues. 

    5. Credit Profile Alignment 

    Receivables-based financing is especially valuable for companies with diverse customer bases across regions and risk profiles. Some external providers are better equipped to structure solutions that account for these complexities. 

    6. Extended Payment Terms 

    If you offer customers 30, 60, or 90-day payment terms, bridging the cash flow gap can protect operations without straining resources. Establishing a flexible financing solution early can give you an advantage as you scale. 

    Bottom line: An external working capital partner is not a replacement for your bank. It is a strategic extension of your liquidity toolkit. By balancing control with flexibility, you can move faster, negotiate stronger and maintain resilience in any market condition. 

    Explore how to gain a competitive edge in working capital management. Download the full GSCF eBook 

  • 7 Questions Every CFO Should Ask Before Scaling a Working Capital Program 

    7 Questions Every CFO Should Ask Before Scaling a Working Capital Program 

    Scaling a working capital program is not just about bigger numbers. It’s about building the right foundation so complexity does not undermine performance. Before you commit to expanding your program, ask yourself these seven questions. 

    1. Are my systems ready to integrate without disruption? 

    Why it matters: Disparate systems and data lead to long implementations and operational drag. 
    Next step: Map integrations with IT and vendors before finalizing scope. 

    2. Where do my biggest friction points occur? 

    Why it matters: High-pain areas create the fastest wins and the biggest risks if ignored. 
    Next step: Survey teams and review process logs to identify delays. 

    3. Do I have cross-functional alignment? 

    Why it matters: Misalignment between finance, sales, IT, procurement and legal can stall execution. 
    Next step: Create a steering committee to own the program across functions. 

    4. How fast do I need funding access? 

    Why it matters: Speed can outweigh rate when time-sensitive opportunities or risks arise. 
    Next step: Think about access to alternative capital. Does your house bank offer alternative capital solutions? 

    5. What’s my risk exposure today? 

    Why it matters: Insurance gaps and credit concentration can block deals. 
    Next step: Conduct a risk audit and document coverage by region, supplier and buyer. 

    6. Will my provider customize or standardize? 

    Why it matters: Customization can improve fit, but standardization supports scalability. 
    Next step: Ask for examples where both have been balanced successfully. 

    7. How will success be measured? 

    Why it matters: Clear KPIs ensure ongoing optimization and strategic alignment. 
    Next step: Align metrics with both financial and operational objectives. 

    Bottom line: Asking these questions before scaling helps the Office of the CFO avoid costly missteps and positions them for long-term success. 
     

    See how GSCF approaches these questions in complex, global environments in our eBook. Read it now.

  • Resilient Working Capital Strategies in a Tariff-Impacted Economy

    Resilient Working Capital Strategies in a Tariff-Impacted Economy

    In today’s interconnected global economy, tariffs have become a critical factor affecting business operations and financial strategies. Companies with complex supply chains are particularly vulnerable to the effects of tariffs, requiring them to adapt their working capital strategies to maintain financial stability and drive growth.

    Challenges Posed by Tariffs in Complex Supply Chains

    1. Increased Costs: Tariffs raise the cost of imported goods, squeezing profit margins. Companies may need to pass these costs onto consumers, potentially reducing demand for their products.
    2. Supply Chain Disruptions: Tariffs can lead to supply chain disruptions as companies seek alternative sources for materials. This can result in delays and increased costs associated with finding new suppliers.
    3. Cash Flow Management: Higher costs and supply chain disruptions can strain a company’s cash flow. Effective working capital management becomes crucial to ensure liquidity and maintain operations.

    Strategies to Mitigate Tariff Impacts

    1. Diversifying Suppliers: Companies can reduce their reliance on tariff-affected imports by diversifying their supplier base. This can help mitigate the risk of supply chain disruptions and manage costs more effectively
    2. Negotiating with Suppliers: Engaging in negotiations with suppliers to secure better terms or bulk discounts can help offset the increased costs due to tariffs
    3. Optimizing Inventory Management: Efficient inventory management can help companies maintain optimal levels, reducing the need for expensive imports and minimizing the impact of tariffs on cash flow
    4. Adjusting Pricing Strategies: Companies may need to adjust their pricing strategies to reflect the increased costs. This can involve passing some of the costs onto consumers or finding ways to absorb them without significantly affecting profit margins

    Unlocking Liquidity and Driving Sales Growth with Connected Capital

    GSCF offers innovative Working Capital as a Service solutions to help companies navigate the complexities of tariffs and create, manage and analyze working capital programs. GSCF’s technology, expert services and Connected Capital ecosystem integrate alternative capital and bank financing, providing a comprehensive platform for managing liquidity and driving growth.

    1. Access to Alternative Capital Sources: GSCF’s platform allows businesses to complement their core bank funding with access to alternative capital. This hybrid approach provides flexibility and stability, enabling companies to manage cash flow, extend payment terms, and respond quickly to changing market conditions.
    2. Enhanced Risk Management: By integrating multiple funding sources, GSCF offers broad-spectrum risk coverage. Advanced analytics and risk management tools provide greater visibility into supply chain and financial performance, mitigating potential risks and ensuring business continuity.
    3. Improved Cash Flow and Liquidity: GSCF’s Connected Capital helps businesses unlock liquidity by optimizing cash conversion cycles. This frees up working capital for strategic reinvestment, supporting sustainable growth and improving cash flow.
    4. Scalability and Growth: GSCF’s solutions are designed to support businesses at every stage of their growth journey. From emerging markets to large enterprises, Connected Capital provides scalable solutions that drive revenue acceleration and market expansion.

    Tariffs present a complex challenge for businesses, especially those with intricate supply chains. By leveraging GSCF’s Working Capital as a Service solutions, enterprises and growth corporates can access alternative capital sources, unlock liquidity, and use working capital to drive sales growth. These strategies enable businesses to navigate the impact of tariffs on their supply chains and continue to thrive in a competitive global market.

  • The GSCF Transformation: Welcome to Working Capital as a Service

    The GSCF Transformation: Welcome to Working Capital as a Service

    By Natalie Silverman, CMO of GSCF 

    We’re excited to usher in a new working capital era as we unveil a new brand identity and narrative, and Peridot transforms into GSCF – the only fully integrated Working Capital as a Service provider of its kind.

    This exciting transformation goes beyond a visual refresh. It signifies GSCF’s commitment to elevating working capital as a strategic driver of business success. Working Capital as a Service brings together an end-to-end holistic platform, expert managed services and alternative capital solutions to support the connected capital ecosystem of suppliers, buyers and financial partners.

    The Power of a Connected Capital Ecosystem

    Despite ongoing challenges in the economy and throughout supply chains, balancing change management with finance transformation, disparate systems and operational models and data silos, companies that dynamically manage working capital efficiency can drive significant benefits.

    Working Capital as a Service empowers the Office of the CFO by improving working capital efficiency and reducing OpEx and enables financial institutions to reduce the cost to serve their corporate clients and improve the customer experience. This leads to:

    • Improved Cash Conversion Cycles: Global analysts report improvements of 10-20% in cash conversion cycles for companies adopting these solutions.
    • Enhanced Growth Potential: Effective working capital management can free up to 20% of a company’s invested capital, allowing for strategic reinvestment.
    • Revenue Acceleration: Companies with optimized working capital are 20% more likely to achieve their revenue targets, while best-in-class performers achieve 50% higher revenue growth.
    • Unlocking Liquidity: Balance real-time liquidity needs with sustainable growth.
    • Managing Risk & Complexity: Mitigate risk and streamline the working capital lifecycle.

    The Future of Working Capital

    The future of working capital is collaborative and data driven. GSCF fosters a connected capital ecosystem where the Office of the CFO and financial partners work together towards common objectives of growth and efficiency. This ecosystem unlocks working capital, allowing businesses to balance immediate liquidity needs with sustainable growth strategies for long-term success. This shift empowers finance teams to move beyond back-office tasks and become strategic advisors, driving growth across the entire organization. 

    Your WCaaS Transformation Journey

    This is Working Capital as a Service. It’s a shift from transactional to transformative, from reactive to proactive, from cost center to profit center. Here’s how to get started:

    • Look for an end-to-end holistic platform to enable and optimize your connected capital ecosystem of suppliers, buyers and financial partners across the full working capital cycle
    • Find a trusted partner offering deep working capital domain expertise and value-added managed services
    • Get access to full risk spectrum coverage across varying customer risk profiles and geographies through alternative capital solutions
    • Utilize data-driven intelligence to dynamically manage and transform working capital into a strategic advantage

    Using working capital as a strategic growth lever is an ongoing process of evolution and optimization. By embracing a strategic approach, partnering with the right WCaaS provider, and leveraging the right balance of technology, expert managed services and alternative capital, you can unlock the true potential of your working capital and turn it into the fuel that accelerates your business transformation.

    Let’s Partner

    Welcome to the new GSCF and Working Capital as a Service. We’re here to empower you with the tools, expertise, and connected capital ecosystem you need to unlock the full potential of your working capital. Let’s embark on your WCaaS transformation journey together. Contact us at marketing@gscf.com to get started.

  • GSCF Launches Working Capital as a Service

    GSCF Launches Working Capital as a Service

    Integrates Platform and Funding Capabilities to Create the First Connected Capital Ecosystem 

    RELEASE DATE: 22 May 2024, 9:00 am EDT  

    NEW YORK, May 22, 2024 – GSCF, a leading global provider of working capital solutions today launched the industry’s first Working Capital as a Service (WCaaS) solution. This innovative new offering enables companies to optimize liquidity management by applying a technology-enabled operating model seamlessly integrated with their funding partners.  

    Now newly unified under the GSCF brand, the Company has combined the operating capabilities of Peridot Financing Solutions LLC with Global Supply Chain Finance Ltd. Core to this integration is the Company’s convergence onto a common, technology platform that supports the end-to-end working capital cycle with highly configurable solutions incorporating expert managed services and access to alternative capital. 

    Through significant technology investment, GSCF has further extended the scope of solutions it delivers to corporate customers and financial institutions. The resulting capabilities of GSCF’s Working Capital as a Service enable the Office of the CFO to work with financial partners to execute new working capital efficiency strategies that build balance sheet strength, manage risk and complexity, and support business growth.

    The Office of the CFO continues to face persistent challenges in its efforts to drive finance transformation, manage disparate systems, and integrate data and operational models. In the face of ongoing economic and supply chain disruptions, companies and their financial partners are seizing the opportunity to leverage working capital as a key growth enabler. 

    In response to this critical need, GSCF’s Working Capital-as-a-Service solution provides customers with:

    • A connected capital ecosystem of suppliers, buyers and financial institutions to create an integrated, frictionless experience
    • An end-to-end holistic platform to enable and optimize the ecosystem across the full working capital cycle
    • A trusted partner offering deep working capital domain expertise and value-added managed services
    • Full risk spectrum coverage across varying customer risk profiles and geographies through unique access to alternative capital solutions
    • Data-driven intelligence to dynamically manage and transform working capital into a strategic advantage

    According to BCG, companies that have optimized their working capital are 20% more likely to achieve their revenue growth targets, and 70% of growth companies that use working capital solutions saw improved business metrics, including lower days payable outstanding, faster cash conversion cycles and higher working capital ratios.

    “Working Capital as a Service reflects going beyond relying on narrow point solutions to accessing a holistic suite of integrated offerings to manage the entire cash conversion cycle with value added by optimizing funding sources and leveraging GSCF’s servicing expertise,” said GSCF Chief Executive Officer, Doug Morgan.

    “GSCF’s Working Capital as a Service has potential to act as a catalyst for strategic transformation helping companies and their financial partners to use working capital programs to possibly drive efficiency and sustainable growth. As the Office of the CFO continues to evolve, investment in working capital solutions that are deeply integrated with existing workflows and finance platforms is of paramount importance,” Senior Research Director, IDC Enterprise Applications, Kevin Permenter.

    About GSCF: 

    GSCF is the leading global provider of working capital solutions. The company empowers companies and their financial institution partners to accelerate growth, unlock liquidity and manage the risk and complexity of the end-to-end working capital cycle. GSCF’s innovative Working Capital-as-a-Service offering combines the power of an end-to-end connected capital technology platform with expert managed services and alternative capital solutions. GSCF’s team of working capital experts operates in over 75 countries, offering a truly global and holistic perspective to solve working capital efficiency challenges. Visit www.gscf.com to learn more.