Tapping into Vital Working Capital: How a Commercial Currency Processing Solution Can Help

9/8/2016

Improving cash flow and freeing up vital working capital are ever present objectives for many organizations. However, for businesses that process large amounts of cash, such as through retail operations, gaining better cash visibility, developing more efficient cash handling processes and achieving faster access to cash can be the one thing that stands in the way of supporting critical growth initiatives and potential business acquisitions.

Idle Cash is Wasted Cash

For many retail organizations, the large amounts of cash collected on a daily basis sit idly in a safe or cash room waiting to be picked up by a courier or deposited at the end of the day, shift, or week. Until this cash is processed by the bank, it provides no tangible benefit to the business. This is the very definition of trapped working capital. While unavailable to the business, it provides no immediate support for vital operational or strategic objectives.

Provisional Credit is Key to Unlocking Vital Working Capital

One of the many benefits of a currency processing solution is that it provides advanced provisional credit for cash deposits. In the case of Fifth Third Currency Processing Solutions™, deposits are provisionally credited within 24 hours of the cash being fed into the smart safe device. Deposit information is automatically relayed to the bank through a secure Internet connection, whereupon the organization’s account is then provisionally credited for deposit the next day.

Cutting-edge currency processing solutions can literally transform the cash collection process, enabling treasury to achieve significant operational efficiency. And by facilitating faster access to trapped cash, treasury professionals are better able to implement more effective working capital management that supports the business. In today’s global marketplace, having working capital available may be key to expanding the business both locally and abroad, strengthening the supply chain, and pursuing forward-looking strategic goals.

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