WCM cases

Selected examples of WCM practice at PostFinance

The WCM experts at PostFinance have already supported countless companies with their expertise on optimizing working capital management. The examples show three possible model solutions and their respective benefits.

Factoring for a manufacturing company

This solution is applied in the accounts receivable of a manufacturing company. This enables the manufacturing company to benefit from the very good creditworthiness of its customers. The company sells its receivables to PostFinance, which makes the payment immediately after the customer acknowledges receipt of the goods. The customer pays their liability to PostFinance on the agreed date.

This solution offers several advantages:

  • Affordable, flexible financing based on the high creditworthiness of customers
  • No adverse effect on the debt-equity ratio

Integrated finance and logistics solution for a telecoms company

In this solution, Swiss Post takes over the entire goods logistics of a telecoms company. The telecoms company is only responsible for strategic procurement. Swiss Post takes over operational procurement as well as reported inventories and physical stock. If required, Swiss Post sells the goods at payment terms of 180 days to the telecoms company and delivers the goods. The advantages of this solution are:

  • The telecoms company releases liquidity for around 60% of the procurement volume
  • The balance sheet is reduced accordingly
  • Logistics and inventories are optimized

Dynamic discounting for a major corporation

With dynamic discounting, companies with very good creditworthiness can use surplus liquidity for early payment to suppliers. This allows suppliers to be more flexible in specifying when they want their invoices to be paid. If required, for example seasonally, PostFinance can provide additional liquidity and handle payment transactions. This solution benefits both customers and suppliers:

  • Companies can reduce their procurement costs and use excess liquidity without risk in order to avoid negative interest rates.
  • Suppliers finance themselves flexibly and inexpensively based on the customer’s good creditworthiness

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