Treasury – Funding Management
The objective of funding Management is to implement strategies that lead to the best borrowing rates and lower investment costs. Learn how treasury aids in loans and investment management functions.
The objective of Investment Management is to implement strategies that lead to the best borrowing rates and lower investment costs.
The debt and investment strategies should optimize capital structure by balancing trade-offs for debt against equity, risk, and returns.
The treasurer uses the analyses of the current liquidity and risk situation to make decisions about future investments and borrowings, taking the conditions on the financial markets into account.
Loans Management
– Borrowing and lending in the form of loans is a key element of a company's liquidity and portfolio management. Some objectives of this component are:
- To reduce financial costs of a business enterprise
- To reduce the cost of borrowings.
- Getting competitive rates on short-term debt financing.
- Identify alternative funding solutions
- Reduce banking costs.
Investment Management
- By gaining timely insight into available cash, investment returns can be maximized.
- And that translates into higher profits and faster growth.
- Drive additional value from surplus regional and consolidated cash
- Redeploying surplus business cash flows efficiently
- Reduce demand for cash
- Investment policies and procedures
Risk Return Profile should be managed to optimize investible surplus.
Tax-efficiency of investment instruments should be monitored by identifying opportunities to reduce tax liabilities and maximize cash flows.
In larger firms, treasury function will also include trading in bonds, currencies and financial derivatives.
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Treasury Management - Functions
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