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Category: Connected Capital Blog

  • From Tactical to Strategic: Why Data is Reshaping Working Capital

    From Tactical to Strategic: Why Data is Reshaping Working Capital

    Most companies still treat working capital as a tactical fix – patching up cash flow with manual processes and fragmented data. But a preview of the upcoming Working Capital Leadership Report shows a clear shift: leaders are using automation and integrated data to turn working capital into a strategic growth engine.

    Early findings from the 2025 survey:

    • Manual processes and poor data integration are holding companies back. Nearly 50% cite inefficient processes as their top challenge, and only 10% have fully integrated, real-time data across finance, procurement and operations.
    • Forecasting is still lagging. Over half (52%) rely on semi-automated systems with manual inputs, and almost a third (31%) still use spreadsheets. Just 4% have fully automated, real-time forecasting.
    • Automation is advancing, but slowly. 40% report moderate automation (like RPA), but 23% have none at all. No respondents claim advanced AI-driven automation yet.
    • Funding is diversifying. 20% of companies now source liquidity from multiple funders, including non-bank partners, while banks still anchor 62% of working capital programs.

    Why does this matter?

    • Companies that move from tactical fixes to strategic integration report faster cash conversion cycles, better forecasts and stronger supplier relationships.
    • Working capital champions use data-led decision-making, cross-functional collaboration and executive sponsorship to drive measurable business impact.

    Bottom line:
    The future belongs to those who automate, integrate and collaborate. Tactical tools solve today’s problems; technology, data and multiple funding sources unlock tomorrow’s growth.

  • A CFO’s Perspective: The Working Capital Path to a Reshoring Advantage

    A CFO’s Perspective: The Working Capital Path to a Reshoring Advantage

    The allure of low-cost offshoring has been a dominant theme in manufacturing for decades. Companies looked to minimize labor costs, chasing a seemingly simple formula for profitability. However, recent years have exposed the fragility of this model. The promise of cheap production has been replaced by the reality of escalating tariffs, unpredictable shipping delays and a global supply chain that is increasingly vulnerable to geopolitical and economic volatility.

    At GSCF, we have a very different kind of conversation with our manufacturing partners. The focus is no longer on how to push production as far as possible, but on a more strategic, and ultimately more profitable, question: How do we bring operations closer to home to build a more resilient and efficient future?

    The answer, for many, is strategic reshoring and consolidation of their domestic operations. This is not a wholesale reversal of strategy; rather, it is a surgical approach to modernizing and centralizing their footprint. This often means shutting down underperforming plants and reinvesting that capital into expanding and upgrading flagship facilities in the U.S. The logic is compelling. By reducing or eliminating the need to import finished goods, manufacturers can avoid burdensome tariffs, drastically cut shipping costs, and shorten lead times from months to mere days. The result is a more agile, cost-effective, and responsive business model.

    However, this strategic pivot comes with a significant and immediate financial hurdle. While the long-term cost savings are clear, the upfront capital expenditure required for facility modernization, new equipment, and operational restructuring can be substantial. It’s an investment in a more efficient future that can strain a company’s working capital and balance sheet in the present. This is precisely the moment when a strategic financial partnership becomes invaluable.

    This is where GSCF enters the conversation. Our role is not that of a traditional lender with fixed requirements. Instead, we see ourselves as a partner in your business’s evolution. We provide a flexible, capital injection that is specifically designed to bridge this financial gap. This allows you to execute your reshoring strategy with confidence, without draining your existing cash reserves or taking on the kind of restrictive, long-term debt that can hinder future growth. Our working capital solution is a key that unlocks your ability to invest in automation, new technology, and streamlined logistics, creating a supply chain that is not only more cost-effective but also more predictable and reliable.  

    The future of manufacturing in the U.S. lies in a smart, consolidated approach that leverages technology and proximity to the customer. This strategy offers a clear path to greater profitability and resilience in an uncertain world. While strategic vision is the first step, the right financial backing is what makes it a reality. If you are a manufacturer looking to secure your supply chain and unlock a new level of operational efficiency, I encourage you to reach out to GSCF. Let’s discuss how a working capital partnership can help you build the future of your business – right here at home.

  • 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.

  • From Revolver Strain to Strategic Flexibility: How Growth Corporates Unlock Liquidity

    From Revolver Strain to Strategic Flexibility: How Growth Corporates Unlock Liquidity

    Growth companies face a constant balancing act. On one hand, sponsors demand aggressive expansion; on the other, lenders watch leverage and liquidity closely. Too often, CFOs and treasurers are forced to use their revolver for routine working capital needs—when that facility should be reserved for strategic initiatives or true emergencies.


    That’s where alternative capital solutions come in. By unlocking liquidity trapped in receivables and payables, finance leaders can take pressure off their revolvers, maintain sponsor confidence, and keep capital available for growth or M&A activity.

    The Revolver Pressure Problem
    Consider a mid-sized telecom company scaling digital services while investing in IT infrastructure. Despite strong growth, day-to-day liquidity needs forced repeated revolver draws, triggering concerns from its lenders. By introducing a receivables financing program, the company freed up liquidity without touching the revolver, preserving borrowing capacity for expansion.
    In another case, a packaging manufacturer growing in pet food faced earnings volatility after a customer bankruptcy. Alternative capital solutions allowed the CFO to fund M&A activity without leaning on the revolver, improving optics with both sponsors and creditors.

    Growth Without Revolver Dependency
    A European industrial group recently implemented a payables finance program across divisions, creating liquidity to fund transformation initiatives while keeping its revolver fully available. This not only improved the company’s balance sheet optics but also reassured lenders ahead of a potential exit event.

    Meanwhile, a global packaging firm carrying high leverage had access to an unused ABL facility, but its rigid terms offered little flexibility. By shifting to an alternative capital program, the CFO unlocked faster, more flexible working capital while maintaining revolver headroom for larger, strategic needs.

    Strategic Growth Requires Strategic Capital
    From tech acquisitions to supply chain expansions, strategic moves require working capital that can be deployed quickly and flexibly. Alternative capital makes this possible by funding growth through receivables and payables programs, not revolver draws – strengthening balance sheet optics and preserving sponsor confidence.

    Why Now?

    • Economic and geopolitical uncertainty, volatile supply chains and postponed IPOs all make traditional financing less reliable. The Office of the CFO needs solutions that are:
    • Resilient: Liquidity that flexes with growth cycles
    • Responsive: Working capital that deploys quickly when opportunities arise
    • Non-dilutive: Funding that avoids tapping the revolver or adding leverage

    Swap Revolver Strain for Alternative Capital
    If your company is relying on revolver draws to fund working capital, it’s time to explore GSCF’s alternative capital solutions. These solutions unlock liquidity, preserve borrowing capacity, and give CFOs and treasurers the flexibility to grow on their terms.rnative capital solutions. These solutions unlock liquidity, preserve borrowing capacity, and give CFOs and treasurers the flexibility to grow on their terms.

  • The Office of the CFO’s Top 10 Checklist for Simplifying Working Capital Complexity 

    The Office of the CFO’s Top 10 Checklist for Simplifying Working Capital Complexity 

    For today’s Office of the CFO, complexity isn’t the exception. It is the operating reality. Shifting trade policies, fragile supply chains and managing across jurisdictions have made working capital management a tangled web. But complexity doesn’t have to be chaos. 

    Here is a practical checklist finance leaders can use to bring clarity, speed and control to working capital strategy without overhauling their entire infrastructure. 

    1. Map Your Complexity 

    Document all legal entities, geographies, systems and supply chain touchpoints that affect working capital. This baseline will guide every integration and improvement decision. 

    2. Unify Platforms Without Rip and Replace 

    Focus on integration, not disruption. Connecting existing platforms can centralize key data and processes faster than a full technology overhaul. 

    3. Streamline Cross-Functional Workflows 

    Align finance, sales, technology and operations on shared KPIs. A single source of truth improves decision-making and reduces delays. 

    4. Automate High-Friction Processes 

    Target manual processes in AR, AP and reporting. Even partial automation can free resources and improve accuracy. 

    5. Standardize Supplier and Buyer Data 

    Inconsistent onboarding, payment terms and documentation slow cash flow. Create templates and enforce them globally. 

    6. Embed Risk Mitigation in Working Capital 

    Integrate credit insurance tracking and exposure monitoring into workflows to avoid costly gaps. 

    7. Prioritize Execution Visibility 

    Identify and address local market bottlenecks early. Visibility at the execution level prevents small issues from escalating. 

    8. Build Playbooks for Special Cases 

    Non-disclosed financing and indirect payment arrangements require specialized processes. Pre-approve workflows to save weeks during execution. 

    9. Measure What Matters 

    Focus on liquidity, cycle times and cost of capital as leading indicators, not just lagging performance metrics. 

    10. Challenge Your Providers 

    Test their ability to deliver speed, flexibility, and tailored solutions. The right partner should meet your needs in real time. 

    Bottom line: Complexity will keep increasing, but with the right checklist, the Office of the CFO can turn it into a competitive advantage. For more insight, download the GSCF’s eBook, Simplifying Complexity in Working Capital Management: A Guide for the Office of the CFO. 

  • Value Creation in Uncertain Times: Private Equity’s Shift to Operational Agility 

    Value Creation in Uncertain Times: Private Equity’s Shift to Operational Agility 

    Traditional value creation models in private equity are being tested. In today’s environment, where assumptions can change in a matter of months, firms are focusing less on financial engineering and more on operational excellence and strategic flexibility. 

    Real-Time Risk Reassessment 

    More than 70% of PE firms now have dedicated portfolio operations teams to track performance and macro exposure in real-time, according to EY’s Global Private Equity Pulse. 

    Market volatility has made it clear that past assumptions don’t hold for long. That’s why leading PE firms are investing in portfolio monitoring tools that track real-time performance, risk factors, and macro exposure. Proactive surveillance allows firms to pivot quickly when circumstances change. 

    Operational Improvements and Tuck-In M&A 

    McKinsey reports that 50-70% of value creation in recent PE exits has come from operational improvements, a sharp increase from under 40% a decade ago. 

    Whether it’s finance transformation, supply chain optimization, or pricing strategy, operational improvements remain a cornerstone of value creation. Additionally, tuck-in acquisitions continue to be a favored tactic, allowing firms to grow platforms efficiently while maintaining control. 

    Always Exit-Ready 

    With longer hold periods and fewer predictable exit windows, firms are keeping their portfolio companies exit-ready at all times. This includes ensuring that reporting is clean, governance is solid, and KPIs are aligned with potential buyer interests. 

    Liquidity and Cash Discipline 

    In this climate, liquidity isn’t just about solvency, it’s strategic. Firms are paying closer attention to working capital, CapEx timing, and leverage. Maintaining strong cash positions enables companies to act quickly when opportunities or challenges arise. 

    Blackstone’s Take: Strategy in Practice 

    Blackstone’s President Jon Gray emphasized that while the IPO market has been the most impacted, “financially motivated buyers are still in the market.” As a result, Blackstone is doubling down on portfolio agility and targeting undervalued public companies for take-private transactions. This shift highlights the importance of operational readiness and strategic patience in value creation. 

    Conclusion: Adapting with Precision 

    Private equity’s approach to value creation is evolving from structured playbooks to dynamic, real-time execution. Agility, discipline, and portfolio integration are what separate high-performing firms in uncertain times. 

    How GSCF Can Help  

    GSCF partners with private equity firms to embed liquidity and working capital tools directly into their value creation plans. From improving receivables turnover to creating flexible alternative capital channels, we help firms execute with confidence and drive operational gains across portfolio companies.