HSBC has launched its global liquidity solutions offering in Australia and Japan, aiming to broaden the number of financial centres that corporates can use as international cash pooling locations.
An HSBC spokesperson explains to GTR what the liquidity management products bring to the trade finance sector: “The platform and products (namely trade, liquidity management) are definitely interrelated, as both focus on the use of working capital.
“By further improving a company’s liquidity management structure (with greater global and regional access to and fungibility of company cash from all sources), the company has more working capital with which to finance its sales to its customers, including trade financing.
“Our platform also enables companies to improve their use of their own working capital resources, reducing demand for external funding by what our liquidity management solutions can save.”
HSBC adds that corporates are increasingly trying to self-fund, due to concerns about market liquidity and the increasing cost of bank borrowing due to regulatory changes, bringing liquidity management tools to the forefront.
Tom Schickler, global head of liquidity for HSBC’s global payments and cash management business, says: “The trend has accelerated in the last 18 months; while large multinationals have used pooling for several years, middle-market companies are now starting to adopt these structures.
“Treasurers are globalising their liquidity, rather than operating purely on a regional or currency basis. This provides companies benefits such as the ability to manage their foreign exchange exposure and minimise the costs associated with it, while integrating their global liquidity position with their accounts payable and receivable seamlessly.”