Manage inflation

With Taulia, you can make cash available sooner – before its value is reduced by inflation. Whether you want to provide third-party liquidity to suppliers, generate yield, or lower risk, we can support you.

The current picture

Across the globe, rising inflation is putting more pressure on already stretched supply chains. Creating cashflow uncertainty for many, reducing the value of companies’ cash reserves and increasing the cost of borrowing.

Adapt to survive

Companies will need to look towards new solutions to help build stability and endurance through volatile market conditions. Ensuring they have sufficient processes and tools in place that will maintain their - and their supply chain’s - operations through this global uncertainty.

What can you do

With a variety of solutions at your disposal, it’s important to consider which will work best for your organization. Read what our experts have to say about the best way to mitigate the risks posed by inflation in the first of our three-part series here.

Working capital is essential to the health of every business, but managing it effectively is a delicate balancing act. As inflation soars, businesses are facing mounting pressure to excel at that balancing act.

Taulia interviewed a cross-section of businesses about their evolving concerns and approaches to working capital management. These conversations took place at the intersection of three major events in the global market: the gradual re-emergence from the COVID-19 pandemic; the deepening crisis in Ukraine; and new turbulence in the global economy characterized by soaring inflation.

Read what they had to say and find out:

• What it is that businesses prioritize when building a healthy supply chain
• How to best leverage digital tools in order to most efficiently manage cash flow
• What is to be done in the short and long term in terms of weathering global inflation
• How to best manage working capital in periods of great instability

Find out more

Many suppliers lack the reserves to weather the erosion of their revenues. A study by J.P. Morgan found that the median small business only has access to 27 days of cash reserves, meaning there is little room for maneuver during times of disruption. Without faster access to liquidity, there is a real risk that small and medium-sized suppliers might go out of business or be unable to fulfill orders – which would squeeze supply while driving up prices still further. And, of course, higher prices will only exacerbate the current inflation challenge.

So, what is needed to enable this brighter future? In a word, cash. Cash is the oil in the supply chain machine: healthy access to cash ensures that trade runs smoothly and efficiently for all parties, improving the resiliency of the whole supply chain.

Our recent blog details the impact that inflation has had on supply chains the world over.

As global markets veer violently from one major catastrophic event to another, so the specter of inflation has inevitably risen. It’s a financial risk that must be contained, but the world’s central banks have so far displayed a fairly uneven response, with the usual anti-inflationary weapon, interest rate rises, being imposed with varying degrees of aggressiveness.

Gain a working capital perspective on some of the foremost issues of the day, including the effects of and the response to – inflationary pressure on supply chains and working capital flows.

What Goes Up… May Stay Up – Treasury Management International

Alistair Baxter, Head of Receivables Finance at Taulia, and Sean Edwards, Chair of ITFA spoke recently with Global Trade Review to reflect on current trends around inflation and the impact on businesses, especially the importance of optimizing the cash conversion cycle, both for larger corporates and SMEs.

<https://www.youtube.com/watch?v=JA-IFLKWRd0>