From Insight to Impact: Unlocking Value Through Increased Working Capital and Cash Flow Forecasting

Over the last 20 years Techbuyer has grown to become one of the global leaders in their field. Drawing on the existing relationship and through collaborative discussions with our Global Payments Solutions team, HSBC UK was Techbuyer’s bank of choice to provide innovative solutions to help optimise their working capital, automate payables and streamline their cashflow forecasting process.

As a user of HSBC’s Corporate Cards, Techbuyer were aware of the working capital benefits card purchases had for the business. When looking to move supplier payments to Corporate Cards, they faced challenges as the suppliers were reluctant to accept card payments due to the cost on their side. HSBC UK worked closely with Techbuyer to deliver a B2B Payment Facility, allowing Techbuyer to ‘pay by card’ while their suppliers receive CHAPS or Faster Payments.

How it works

HSBC’s B2B Payment Facility is accessible via single sign on to HSBCnet. To pay a supplier, Techbuyer’s authorised users will log on to HSBCnet and select to pay from one of two B2B accounts. The supplier receives either a CHAPS or Faster Payment depending on the payment value, and to Techbuyer, the transaction looks and feels like a card payment, with their card limit used to pay the supplier. The payment automatically feeds through to HSBC’s Corporate Card Programme Management and Reporting Platform MiVision for reconciliation, as a traditional card payment would.

Techbuyer holds two B2B accounts which have statements being issued at different times in the month, giving Techbuyer flexibility to decide on the payment date and degree of working capital required.

HSBC’s B2B Payment Facility has provided Techbuyer with a seamless in-house process which has delivered the working capital benefit to the business.

Following the successful implementation of the B2B Payment Facility for Techbuyer, HSBC’s Global Payment Solutions team strengthened the relationship by taking the time to understand Techbuyer’s wider business needs and developing a suite of tailored solutions for them spanning multiple markets. Value was added through initiatives such as automating payment processes via host-to-host integration and streamlining cash flow forecasting.

Cash Flow Forecasting

Cash Flow Forecasting had been an operational hurdle for Techbuyer. The data used was never consistent, it was difficult to establish patterns, and they were relying on their accounting system rather than statement data. Techbuyer couldn’t risk placing hedging deals which restricted their ability to maximise their treasury function, both managing currency exposure risk and optimising conversion of foreign currency.

HSBC’s Cash Flow Forecasting module available via single sign on to HSBCnet has provided Techbuyer with transparency on current and predicted cash flow positions. The level of granularity HSBC’s Cash Flow Forecasting has provided has filled a significant gap in Techbuyer’s reporting. Immediate access to accurate data has allowed Techbuyer to enhance their treasury management processes by hedging deals and using other financial instruments that they haven’t been able to rely on previously.