Occasionally evaluating the balance sheets of the business and participating in business strategy is not the only work that falls on the shoulders of finance directors. Apart from looking after the financial health of the business, modern finance directors are now planning for future growth. They are helping the CEO make better decisions and ensuring that the organization is foundationally strong for future business opportunities.
In a study by EY, Changing Role of the Financial Controller, it was concluded that 82% of finance directors think their business position is becoming more challenging by the day. They additionally believe that their job roles have expanded and evolved over a period of time. If we further dig deep into the study, it was revealed that 49% of modern finance directors think that they need to take up the key initiatives for supporting the strategic goals of the business. In fact, 57% of people think it was important for them to offer actionable insights for strategic planning to be carried out by CEOs.
As the roles and responsibilities of the finance director increases, so does the possibility of grabbing new opportunities. However, a hurdle that comes in the way is the drawback of not being able to invest surplus treasury which needs to be handled in a manner to maximize returns. The options for investing are now shrinking and many organizations are receiving lower investment benefits.
Undoubtedly, a sound treasury and risk reduction are critical to the growth of the business. Hence, let’s dive in and discuss how this can be achieved.
Proceeding towards a New Growth Mindset
It is believed that for most businesses, high market risks and lower returns are attenuating investment options. Using treasury surplus in order to achieve profits and future growth seems like a lost cause with increased exposure to risk. Contrary to this, for suppliers, when payments come in late, the working capital is reduced till the time the payment is due.
Hence, dynamic financing can become the ultimate go-to option for many finance directors. They can simply deploy surplus treasury funds to acquire higher ROI. When your risk profile is leaning towards the negative side, utilise dynamic financing. Deploy the surplus treasury on the KredX Early platform and allow the suppliers to place a bid. This method not only saves businesses from risks but also improves supplier-relations.
Let’s understand how KredX Early works:
Once you have deployed your surplus treasury on the platform, the suppliers can place a discounted bid. This means that you can acquire supply from suppliers at a discounted rate if you pay early. Consequently, the supplier can rapidly increase working capital and you can receive high returns.
Financial Directors Are Now Widening Their Horizons
Financial directors are seeking dynamic financing for strategic business growth. If you also want to have a similar experience, KredX can help you invest your money in the right place. You can make hassle-free transactions, drive company growth, and keep the cash flow healthy. You can additionally carry out the whole process online without hassle.