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Tag: Working Capital as a Service

  • Avoiding Credit Market Pitfalls: How Data Transparency Drives Smarter Risk

    Avoiding Credit Market Pitfalls: How Data Transparency Drives Smarter Risk

    Recent developments in the credit markets have underscored the importance of robust risk management and data transparency. The First Brands situation, which resulted in losses for numerous funders due to double-pledged or fabricated receivables, has become a clear example of why thorough due diligence matters.

    GSCF’s Approach: Spotting Red Flags Early

    Over the past five years, GSCF was approached multiple times to participate in First Brands’ accounts receivable programs. Each time, our team of working capital, credit and risk experts – in addition to our Connected Capital platform and risk protocols – identified several high-level concerns, such as gaps in transparency, complexity in funder involvement and other risk factors. These red flags prompted us to pass on every opportunity, ensuring that GSCF maintained zero exposure to First Brands.

    How GSCF Helps Expand Risk Coverage

    • Proactive Risk Management: Our platform alongside our Credit and Capital Markets teams flag issues early, allowing us to avoid opportunities that don’t meet our standards – protecting our clients and partners from unnecessary risk.
    • Mitigate Counterparty Risk: Integrated credit and risk management tools help monitor buyer and supplier performance and give our corporate and bank partners the confidence to respond to early warning signals. 
    • Scale Globally with Confidence: For those managing global working capital programs, we can provide the data transparency and localized legal, regulatory and credit frameworks tailored to each market.

    While other funders are now managing the fallout from First Brands, GSCF’s proactive approach and commitment to transparency have kept our clients safe. We continue to lead the way in risk management, setting a new standard for accountability and data-driven decision making.

    The First Brands case highlights why data transparency and rigorous due diligence are essential in today’s credit market. With the combination of GSCF’s risk management experts and Connected Capital platform, our clients benefit from an ecosystem designed to prevent issues before they arise, ensuring confidence and security in every transaction.

    Best Practices for Navigating Today’s Credit Climate

    1. Prioritize Data Transparency: Insist on direct access to transaction-level data and historical payment records. Transparency is the foundation of effective risk management.
    2. Strengthen Due Diligence: Go beyond surface-level checks. Regularly review collateral, validate receivables and ensure there are no double pledges.
    3. Monitor Counterparty Performance: Use integrated tools to track buyer and supplier behavior and respond quickly to early warning signals.
    4. Diversify Funding Sources: Avoid over-reliance on a single funder or platform to reduce concentration risk. While diversification is important, ensure all parties are aligned on transparency and controls.


    If you’d like our team of working capital experts to conduct a proactive risk assessment of your working capital portfolio, reach out to us today. We’re here to help you navigate uncertainty and strengthen your risk controls with the power of data transparency.

  • From Tactical to Strategic: Why Data is Reshaping Working Capital

    From Tactical to Strategic: Why Data is Reshaping Working Capital

    Most companies still treat working capital as a tactical fix – patching up cash flow with manual processes and fragmented data. But a preview of the upcoming Working Capital Leadership Report shows a clear shift: leaders are using automation and integrated data to turn working capital into a strategic growth engine.

    Early findings from the 2025 survey:

    • Manual processes and poor data integration are holding companies back. Nearly 50% cite inefficient processes as their top challenge, and only 10% have fully integrated, real-time data across finance, procurement and operations.
    • Forecasting is still lagging. Over half (52%) rely on semi-automated systems with manual inputs, and almost a third (31%) still use spreadsheets. Just 4% have fully automated, real-time forecasting.
    • Automation is advancing, but slowly. 40% report moderate automation (like RPA), but 23% have none at all. No respondents claim advanced AI-driven automation yet.
    • Funding is diversifying. 20% of companies now source liquidity from multiple funders, including non-bank partners, while banks still anchor 62% of working capital programs.

    Why does this matter?

    • Companies that move from tactical fixes to strategic integration report faster cash conversion cycles, better forecasts and stronger supplier relationships.
    • Working capital champions use data-led decision-making, cross-functional collaboration and executive sponsorship to drive measurable business impact.

    Bottom line:
    The future belongs to those who automate, integrate and collaborate. Tactical tools solve today’s problems; technology, data and multiple funding sources unlock tomorrow’s growth.

  • Resilient Working Capital Strategies in a Tariff-Impacted Economy

    Resilient Working Capital Strategies in a Tariff-Impacted Economy

    In today’s interconnected global economy, tariffs have become a critical factor affecting business operations and financial strategies. Companies with complex supply chains are particularly vulnerable to the effects of tariffs, requiring them to adapt their working capital strategies to maintain financial stability and drive growth.

    Challenges Posed by Tariffs in Complex Supply Chains

    1. Increased Costs: Tariffs raise the cost of imported goods, squeezing profit margins. Companies may need to pass these costs onto consumers, potentially reducing demand for their products.
    2. Supply Chain Disruptions: Tariffs can lead to supply chain disruptions as companies seek alternative sources for materials. This can result in delays and increased costs associated with finding new suppliers.
    3. Cash Flow Management: Higher costs and supply chain disruptions can strain a company’s cash flow. Effective working capital management becomes crucial to ensure liquidity and maintain operations.

    Strategies to Mitigate Tariff Impacts

    1. Diversifying Suppliers: Companies can reduce their reliance on tariff-affected imports by diversifying their supplier base. This can help mitigate the risk of supply chain disruptions and manage costs more effectively
    2. Negotiating with Suppliers: Engaging in negotiations with suppliers to secure better terms or bulk discounts can help offset the increased costs due to tariffs
    3. Optimizing Inventory Management: Efficient inventory management can help companies maintain optimal levels, reducing the need for expensive imports and minimizing the impact of tariffs on cash flow
    4. Adjusting Pricing Strategies: Companies may need to adjust their pricing strategies to reflect the increased costs. This can involve passing some of the costs onto consumers or finding ways to absorb them without significantly affecting profit margins

    Unlocking Liquidity and Driving Sales Growth with Connected Capital

    GSCF offers innovative Working Capital as a Service solutions to help companies navigate the complexities of tariffs and create, manage and analyze working capital programs. GSCF’s technology, expert services and Connected Capital ecosystem integrate alternative capital and bank financing, providing a comprehensive platform for managing liquidity and driving growth.

    1. Access to Alternative Capital Sources: GSCF’s platform allows businesses to complement their core bank funding with access to alternative capital. This hybrid approach provides flexibility and stability, enabling companies to manage cash flow, extend payment terms, and respond quickly to changing market conditions.
    2. Enhanced Risk Management: By integrating multiple funding sources, GSCF offers broad-spectrum risk coverage. Advanced analytics and risk management tools provide greater visibility into supply chain and financial performance, mitigating potential risks and ensuring business continuity.
    3. Improved Cash Flow and Liquidity: GSCF’s Connected Capital helps businesses unlock liquidity by optimizing cash conversion cycles. This frees up working capital for strategic reinvestment, supporting sustainable growth and improving cash flow.
    4. Scalability and Growth: GSCF’s solutions are designed to support businesses at every stage of their growth journey. From emerging markets to large enterprises, Connected Capital provides scalable solutions that drive revenue acceleration and market expansion.

    Tariffs present a complex challenge for businesses, especially those with intricate supply chains. By leveraging GSCF’s Working Capital as a Service solutions, enterprises and growth corporates can access alternative capital sources, unlock liquidity, and use working capital to drive sales growth. These strategies enable businesses to navigate the impact of tariffs on their supply chains and continue to thrive in a competitive global market.