WHEN choosing a working capital and trade finance partner, CFOs and treasurers value the ability to provide innovative financing structures more than they did a year ago, according to the latest data snapshot from Asset Benchmark Research’s (ABR) ongoing Treasury Review 2018, which has so far canvassed the views of over 680 corporate treasurers and CFOs in Asia.

Compared to last year’s 2017 survey, pricing and credit limit were still the two most important factors when choosing a working capital and trade finance provider. However, innovative financing structures replaced group-level (headquarter) requirements as the third most important factor.

Source: Treasury Review 2018, Asset Benchmark Research

Moreover, corporates tended to increase the number of working capital and trade finance banks they partnered with in 2018. Over one third of total respondents (34.49%) partnered with more than five banks for working capital and trade finance needs. However, in last year’s survey, most respondents (31%) partnered with two to three transaction banks.

The 2017 survey showed that Asian CFOs and treasurers favoured bank loans as their preferred source of funding. In this year’s 2018 review, bank loans are still the most favoured funding source, while trade finance facilities and retained earnings ranked second and third.

Source: Treasury Review 2018, Asset Benchmark Research

These data are part of ABR’s ongoing Treasury Review 2018. To participate, please click here.

Find out more about The Asset 4th Asia Treasury & Trade Summit please click here.

Background
Since 2014, Asset Benchmark Research has gathered the views of corporate treasurers and CFOs in Asia on their current and planned treasury activities in the annual Treasury Review.

The survey asks about a range of topics such as their treasury set up, bank relations; risk management; review of treasury solutions and their outlook for the year ahead. Corporates are asked about the challenges they face in their treasury operations both from a daily operational and long-term strategic perspective.

There is also an emphasis on reviewing how corporates leverage technology in their business either to automate payables, improve reconciliation or rationalize banking connectivity. The review is conducted in the first half of the year.