Okay, we're gonna have a look at cash management solutions, and let's think about the objectives of a business.

Well, firstly, it's gonna look to gain control of its cash flows. So look to achieve a stable operating working capital cycle, and this means that it should be able to unlock trap funds.

So optimize its inventory days and its receivable days.

Ultimately, the absolute value of its inventory and ref receivables should shrink.

And as a consequence of this, it's gonna enhance its balance sheet.

So look, should look to move its net operating, working capital from an asset to a net liability position, something that provides funding for the business.

Ultimately, you pull all this together and it enables the business to self-fund its growth.

So, reduce its investment in operating, working capital and divert that towards property, plant, and equipment.

So, increase its CapEx expenditure.

Let's think about how a financial institution can assist there.

So let's think about the various solutions that we could use.

Well, the first thing to think about is structured finance, and this is a form of debt finance, which is structured around the supply chain.

It's something that's self-liquidating each stage of the supply chain.

But what does that really mean? Well, from a a, a lender's point of view, they wouldn't look at the credit worthiness of the borrower, but they'd look at the cash flows within the supply chain and then lend against that.

We might also think about export finance, so letters of credit to ensure that the business is paid on time, irrespective of whether customers can pay.

Uh, and this avoids a lack of liquidity, interrupting the supply chain.

We might also look at services related to payables and receivables.

So possibly a financial institution might offer the ability to outsource accounts payable and accounts receivable.

Uh, it, it will certainly look at the clearing of payments to make those as fast as possible. This enables companies to get funds sooner so they can hold onto them for longer, much better visibility on receivables and payables to enhance customer and supplier relationships.

We might also consider open account solutions, so trading directly one company, trading directly with another company.

Those companies are pre-approved by a financial institution to have good financial status.

This means that access to import and export finance products, such as letters of credit are available without any need for underlying documentation on a piecemeal basis.

We might also think about guarantees.

So negotiating favorable credit terms with buyers and suppliers in the absence of established relationships, using guarantees and standby letters of credit.