Return on cash problem

Close to 0% on cash balances destroys value compared to a company's cost of capital. $2 trillion of cash on US corporate balance sheets is the single largest monthly opportunity cost facing CFO's. 

 


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FUNDING WORKING CAPITAL PROBLEM

Suppliers use up to 70% of funding to finance working capital and Accounts Receivable at their cost of capital, far in excess of the close to 0% their customers earn on cash balances.


Banks, working capital financiers, and others are looking to deploy their capital

We are unique in that we show you how to deploy your capital

Benefits to cash rich corporate customers

▸ 6% p.a. interest on cash that is currently earning close to zero

▸ In a secure interest loop against what is owed to suppliers

▸ No transactional level complexity and no impact on days outstanding metrics

▸ Improved supplier relationships and influence


Benefits to suppliers

▸ Cash and liquidity with no collateral or covenants 

▸ Customers fund themselves 

▸ Improved returns with low cost funding

▸ Cheaper and easier than settlement discounts

▸ Customers Incentivized to order more

DESIGNED BY KPFB

FINANCE STRUCTURING

Tools and structuring

recognized by

The World Bank.

COLLATERAL FINANCE

Products recognized and  

used by public companies,

international banks and

commodity exchanges.

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RISK MANAGEMENT

Winner of Microsoft awards.

$80 million | Consumer Goods

I first designed Secure Interest, when as CFO, I deployed $80 million. I was frustrated with my Treasury function's very low return expectation on cash reserves, given their existing portfolio tools. It was unacceptable.

▸ Kevin Potter


$70 million | Food & Logistics

We used this to structure and deploy $70 million. Besides the bottom line benefit each year, a big win was the closer relationship and influence we had with our key strategic suppliers.

▸ Sias Els


"Secure Interest avoids re-pricing risk inherent in traditional low yield fixed income instruments when interest rates change"

HOW IT WORKS

 

We provide the methodology, full training, legal and contracting templates, GAAP and implementation steps for this unique program.

▸ fixed once off fee

▸ remote training session

▸ documentation and template pack

Optional: if you choose, engage us to do the actual co-implementation and manage annual roll-overs with your team