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Tag: Working Capital

  • 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 The promise of cheap production has been replaced by the reality of escalating tariffs, unpredictable shipping delays and a global supply chain that is increasingly vulnerable to geopolitical and economic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—and more—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.

  • 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. 

  • Private Equity and Global Risk: Rethinking Strategy in the Tariff Era 

    Private Equity and Global Risk: Rethinking Strategy in the Tariff Era 

    As macroeconomic and geopolitical factors converge, private equity firms are rethinking their exposure to global pressures, particularly in the form of tariffs and trade policy volatility. These forces are reshaping how deals are sourced, evaluated, and structured. 

    Sector Resilience and Rotation Toward Services 

    Certain sectors, especially software and business services, are being viewed as more resilient in the face of tariff uncertainty. These businesses often have fewer physical goods crossing borders and are therefore less exposed to direct tariff costs. However, inflationary effects can still impact downstream margins, particularly when cost inputs rise. 

    Geographic Diversification to Mitigate Concentration Risk 

    Firms are exploring geographic expansion to mitigate concentration risk. For example, a Canadian portfolio company may look to grow into the U.S. or Europe, not only for market opportunity but also to hedge against changes in trade policy. This is particularly relevant for funds with sector exposure in manufacturing, logistics, and consumer goods. 

    Tariffs as a Deal Structuring Variable 

    Deloitte’s 2024 M&A Trends Survey notes that nearly 1 in 4 cross-border M&A deals now includes tariff-adjusted valuation scenarios, underscoring the need for adaptive underwriting models. 

    In some M&A processes, the impact of tariffs is so significant that buyers are submitting dual bids, one assuming normal conditions and another adjusted for tariff exposure. This practice underscores just how embedded macro risk has become in PE underwriting. 

    Building Resilient, Globally-Aware Portfolios 

    Over 60% of private equity firms in North America cited geopolitical instability and trade policy shifts as a top risk in 2025, according to Preqin. In response, firms are embedding geopolitical analysis into due diligence. 

    Blackstone, for example, sees volatility from trade negotiations as an investment opportunity. CEO Stephen Schwarzman noted that uncertain markets often present the best time to deploy capital. With $177 billion in dry powder, Blackstone continues to act on global dislocation opportunities. He also revealed plans to invest up to $500 billion in Europe over the next decade, citing improving macro conditions, deeper government spending, and favorable valuations. 

    PE firms are taking a more analytical, scenario-based approach to global risk. Cross-functional diligence teams, including tax, trade compliance, and political risk analysts, are increasingly part of deal evaluation. 

    While the full impact of new tariffs may not yet be fully felt, firms should prepare for the possibility of more material disruptions as the year progresses. As such, firms are wise to hedge structurally now and factor in the potential downstream effects of trade disruptions to position themselves to respond with speed and flexibility. 

    How GSCF Can Help  

    GSCF helps clients navigate tariff volatility and geographic uncertainty by offering trade finance solutions that adapt to global risk. Whether structuring cross-border receivables programs or supporting localized funding needs, our solutions are designed to scale with your strategy and keep capital flowing despite external headwinds. 

    Now is the time to assess and understand your alternative financing options so when market signals shift or disruptions hit, you’re ready to act with confidence. GSCF ensures your financing structures are sound, flexible, and ready to deploy when timing is critical. 

  • Navigating Uncertainty: How Private Equity is Adapting to a Shifting Market 

    Navigating Uncertainty: How Private Equity is Adapting to a Shifting Market 

    Uncertainty continues to define the private equity (PE) landscape in 2025. From fluctuating macroeconomic signals to geopolitical shifts and evolving sector dynamics, PE firms face a complex set of variables when evaluating opportunities. The result? A significant widening in bid-ask spreads and a more cautious approach to deploying capital. 

    Bid-Ask Spread Widening: A Reflection of Market Ambiguity 

    According to PitchBook, the average global bid-ask spread in private equity widened by over 25% from 2021 to 2024, especially in tech and consumer sectors. This has further complicated deal structuring and contributed to delayed timelines. 

    Across many sectors, we’re seeing deal activity slow not because of lack of interest but because buyers and sellers are operating from very different assumptions. Sellers often anchor to past valuations, while buyers bake in risk premiums, recession fears and uncertainty around growth trajectories. This disconnect has created friction, especially in sectors with less predictable earnings. 

    Dry Powder Preservation and GFC Parallels 

    Bain & Company reports that global private equity dry powder reached $2.6 trillion by early 2025, a record high. Despite this, investors remain selective, deploying capital into high-conviction deals while waiting for clearer market signals. 

    Many funds are holding capital for what they consider high-conviction bets, deals that resemble post-2008 dislocation opportunities. During the Global Financial Crisis (GFC), quality assets were sold off under pressure. Some investors are preparing for similar opportunities to emerge, especially if credit markets tighten or distressed assets hit the market. 

    The IPO Slowdown and Extended Private Holding Periods 

    The initial public offering (IPO) window remains muted, pushing more companies to extend their time in the private markets. This has reshaped expectations around hold periods and fund life cycles. In turn, firms are focusing more heavily on value creation strategies to sustain long-term growth and remain flexible with exit timing. 

    Secondaries and Strategic Sales as Exit Alternatives 

    With public market exits limited, funds are increasingly looking to secondaries and strategic buyers for liquidity. Secondary transactions provide a way to return capital to LPs and generate DPI (distributions to paid-in capital), which is critical in today’s cautious fundraising environment. Strategic sales, particularly to well capitalized corporates, offer an attractive path when IPOs are off the table. 

    Signs of Rebound: A Blackstone Perspective 

    There are reasons for optimism. Blackstone’s Head of North America Private Equity, Martin Brand, recently noted that the firm expects “an improved environment for mergers & acquisitions and a pickup in IPO activity” in 2025, anticipating the ability to “sell and exit more than twice the number of private equity investments” compared to the prior year. This signals renewed market momentum and an opening of the exit window. 

    What This Means for 2025 and Beyond 

    The private equity market is not frozen, but it has become more selective. Funds are recalibrating valuation models, incorporating broader risk scenarios, and emphasizing discipline in underwriting. Precision, patience, and a well-prepared pipeline are more important than ever. 

    How GSCF Can Help  

    GSCF supports private equity firms by providing working capital solutions that bring flexibility and liquidity to their portfolios. Our platform enables real-time visibility across receivables, streamlined onboarding of suppliers and buyers, and scalable financing programs tailored to uncertain markets. We help clients unlock value even when exits are delayed or fundraising is challenging. Critically, GSCF can move faster than traditional lenders, delivering funding quickly when timing matters most. This speed and agility make us a strategic partner for firms looking to act decisively in a volatile environment. 

  • From Fragmentation to Control: Ingram Micro’s Working Capital Transformation

    From Fragmentation to Control: Ingram Micro’s Working Capital Transformation

    Ingram Micro, operating in over 75 countries, faced a challenge common to many global enterprises: a patchwork of local working capital programs that lacked cohesion. In the webinar, “When the Heat is On: Working Capital as a Strategic Advantage in High-Stress Situations,” Assistant Treasurer Brad Banga shared how this fragmentation limited visibility, delayed funding, and complicated compliance during high-stress periods like the COVID-19 pandemic. 

    Without a unified platform, each country team managed its own receivables financing programs using different processes and tools. The lack of standardization created hurdles in calculating costs, assessing risk, and delivering reliable reports to internal stakeholders or auditors. 

    By partnering with GSCF, Ingram Micro was able to: 

    • Centralize its global working capital data into one system of record. 
    • Standardize processes for invoice uploads, approvals and reporting across all markets. 
    • Improve governance and auditability, ensuring compliance and reducing operational risk. 
    • Enhance agility, allowing the treasury team to respond more quickly to changes in funding needs or market dynamics. 

    Banga emphasized the importance of future-proofing working capital programs: “Even if you’re just starting out with one or two programs, you need to build with scale and efficiency in mind.” 

    Want to learn more? Watch the webinar recording here. 

    GSCF Insight: Our technology and servicing platform helps corporates unify and scale their working capital programs globally. This can lay the groundwork for the Office of the CFO to move from tactical to strategic working capital. 

  • Strategic Planning in a Trade-Constrained World: Turning Risk Into Opportunity

    Strategic Planning in a Trade-Constrained World: Turning Risk Into Opportunity

    When tariffs rise or trade policies shift unpredictably, the ripple effects across the supply chain are swift and severe. For finance leaders, this isn’t just a compliance challenge – it’s a strategic inflection point.

    The Office of the CFO’s Imperative: Adaptive Capital Strategy

    Increased tariffs act like a tax on inputs, which tightens margins and complicates cash flow forecasting. This forces a shift in working capital strategy – from reactive cost containment to proactive capital reallocation. CFOs who treat tariffs solely as a line-item cost miss the broader picture: tariffs impact inventory positioning, supplier relationships, sourcing decisions and even customer pricing structures.

    This is where financial agility becomes a growth lever.

    By reassessing your capital structure and taking a connected capital approach, finance can realign liquidity to where it has the highest strategic impact – such as prepaying key suppliers to lock in price stability, investing in nearshoring to mitigate risk, or increasing access to alternative capital to bridge timing gaps in a volatile sourcing environment.

    Liquidity Under Pressure: Building Cushion Without Drag

    Tariffs, trade restrictions, and shifting geopolitical alliances strain liquidity in two key ways:

    • Longer lead times and higher landed costs: Capital gets trapped in transit or held in warehouses.
    • Disrupted supplier terms: Counterparties may demand faster payment or shift risk downstream.

    In this context, traditional metrics like DPO and DSO no longer tell the full story. Savvy finance strategists are building liquidity buffers not just to survive tariff-related disruption, but to deploy them as competitive advantages – allowing their companies to secure preferred vendor status, meet customer demand faster, or capitalize on distressed asset buys when competitors falter.

    Tariffs as a Catalyst for Strategic Reinvention

    While the immediate response to tariffs may be defensive (e.g., rerouting supply chains or raising prices), the long-term opportunity is offensive: transforming your capital allocation model to favor agility over rigidity.

    Ask yourself:

    • How quickly can your organization pivot sourcing or pricing strategies?
    • Do you have the right funding partners in place to flex when trade winds shift?
    • Is your working capital trapped in the wrong parts of your value chain?

    The companies that win in a tariff-laden future won’t be the ones that simply absorb costs – they’ll be the ones that translate those pressures into liquidity-backed decisions that fuel innovation and market share expansion.

    Contact us to see how GSCF can support your working capital needs.

    Explore our latest playbook for finance leaders navigating trade uncertainty.

  • Tariffs, Tension, and the Office of the CFO’s Competitive Edge

    Tariffs, Tension, and the Office of the CFO’s Competitive Edge

    The reintroduction of 25% U.S. tariffs on multiple countries is more than political posturing, it’s a macroeconomic shockwave that reverberates through every balance sheet. CFOs don’t have the luxury of waiting for trade policy to stabilize. The Office of the CFO must act now – to protect liquidity, preserve margins, and turn volatility into value.

    A CFO’s Reality Check

    The latest round of tariffs is forcing leadership teams to reassess supplier relationships, pricing strategies, and financing structures in real time. These aren’t theoretical risks – they’re immediate cash flow events. Procurement teams may be renegotiating contracts, but the lag between strategy and execution can be fatal to liquidity.  Unfortunately, the changeable nature of these tariff mandates doesn’t negate them – it actually increases the need for CFO’s to be nimble and prepared to respond quickly.

    That’s why GSCF offers a proactive approach with our Connected Capital model with alternative capital channels and integrated working capital programs to strengthen customers’ financial position and gain real-time control.

    Why This Isn’t Just About Trade

    Tariffs act as a slow-moving liquidity crisis. Margins compress. Suppliers become stressed. Cash conversion cycles elongate. If you’re waiting for your bank to offer more credit, you’re already behind.

    GSCF’s hybrid model has allowed us to:

    • Deploy alternative capital without increasing our leverage ratios
    • Maintain strong supplier ties by offering early payments without weakening our own liquidity
    • Access dashboards that model risk exposure across regions in real time

    This is not about riding out the storm. It’s about using the storm to reset how we finance growth.

    The Strategic Window Is Open, But Not Forever

    The 90-day pause before tariffs fully take effect isn’t a grace period – the run-up periods to implementation are a countdown. We’re using this window to help customers hardwire resilience into their working capital model. GSCF is a key partner in enabling that shift.

    If you’re still viewing working capital as an operational task, you’re missing the bigger play.

    This is finance’s moment to lead. Contact us today to see how GSCF can support your working capital needs.

    Contact us to see how GSCF can support your working capital needs.

    Explore our latest playbook for finance leaders navigating trade uncertainty.

  • How Channel Sellers Can Offer Competitive Terms for Buyers

    How Channel Sellers Can Offer Competitive Terms for Buyers

    Channel sellers – especially in the tech, hardware, and telecom sectors – know that offering extended payment terms is table stakes to stay competitive. But these terms often create a cash flow crunch for suppliers, requiring them to float capital while waiting for customers to pay.

    For many, the only solution has been to lean harder on their credit facilities, sacrifice growth investments, or worse – delay supplier payments. None of those are sustainable.

    Enter Distribution Finance, a form of Connected Capital that allows companies to offer longer payment terms to buyers without tying up working capital or impacting their balance sheet.

    This unlocks new opportunities:

    • Grow channel sales by making terms more attractive
    • Buyers maintain liquidity
    • Suppliers get paid faster

    Download the Connected Capital Blueprint eBook to learn how leading tech suppliers are staying competitive without sacrificing liquidity.