The Association for Financial Professionals (AFP) held its annual conference November 7-10 in San Antonio, TX, and the agenda included more than 130 sessions on a variety of topics for corporate finance professionals.
One session, “Money Market Mutual Funds & Cash Investments: Doing More Due Diligence,” discussed money market investment strategies. Co-presenting was the treasurer from a company in the agricultural industry. With more than $2 billion in cash and cash equivalents on its balance sheet, the company had a team dedicated to the monitoring of its money market investments. For these investments, managing risk is more important than cash return.
This company is an ideal candidate for earning low-risk, high yield cash returns from early payment discounts. The double-digit, annualized cash returns are significantly higher than money market funds and other short-term investments, and there’s no risk to paying an invoice early to improve a supplier’s cash flow.
As organizations move from paper invoice processing to e-invoicing, they can process an invoice in a few days to capture all available early payment discounts. And with Ariba e-invoicing, organizations can leverage “dynamic discounts” on a sliding scale up to the due date of the invoice. This presents new opportunities for buyers and suppliers to better manage cash.
To learn more about this collaborative approach to finance management, attend our November 18 webinar, “Four Keys to Cash Flow Value in an Anemic Recovery." If you can’t attend that day, you can listen to the recording after the live presentation.