Page 4 - MUFG Spring 2021

PERSPECTIVE
A s a Working Capital and Payments Consultant, I tend to spend significantly more time listening than talking. That
tends to surprise a lot of my coworkers - but it shouldn’t. Finding worthwhile and customized solutions requires a thorough understanding of the client which can only come from asking questions and listening. Lots and lots of listening. And in the last 12 months I’ve noticed a change in what I have been hearing – a shift in the conversation.
I recently participated in a client meeting that dedicated time to understanding of their Treasury team’s goals. I started the discussion as I often do, with a direct question to the Treasurer: “Do you have any goals specific to working capital?” It was a purposely broad
question and I received an answer that I hear frequently - that working capital was always a priority for the company. As the conversation continued, we learned that there was no effort underway to extend their Days Payable Outstanding (DPO) through longer payment terms or any of the many financial solutions that target DPO. As we listened more, we learned that the company was extremely concerned with the strength of their supply chain and if asked by a supplier, were willing to pay sooner than their terms dictated. Discussions regarding receivables had similar results - a point of view that there was too much risk in pressuring their clients to paying faster. Inventory also - no plans for any change. Eventually I posed the question that had been swirling around my head, “At the
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FACT-FIND, COMMUNICATE, AND WORK WITH PASSION
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MUFG TRANSACTION BANKING AMERICAS GROUP / SPRING 2021