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GSCF Unveils Working Capital as a Service Solution

GSCF is launching a working capital as a service solution for businesses.

The offering will allow companies to maximize their liquidity management by applying an operating model that is integrated with their funding partners, the company said in a Wednesday (May 22) news release.

By combining the operating capabilities of Peridot Financing Solutions with Global Supply Chain Finance, GSCF’s new platform supports the working capital cycle from start to finish with configurable solutions that incorporate expert-managed services and access to alternative capital, according to the release.

The solution offers businesses a connected capital ecosystem of buyers, suppliers and financial institutions; an end-to-end holistic platform that allows for the ecosystem to be optimized throughout the working capital cycle; full-risk spectrum coverage across different customer risk profiles; and data-driven intelligence to use working capital as a strategic advantage.

“Working capital as a service reflects going beyond relying on narrow point solutions to accessing a holistic suite of integrated offerings to manage the entire cash conversion cycle with value added by optimizing funding sources and leveraging GSCF’s servicing expertise,” GSCF CEO Doug Morgan said.

CFOs continues to face challenges in driving finance transformation, managing disparate systems and integrating data and operational models, GSCF said in the release.

PYMNTS Intelligence has found data that concurs.

One such challenge is economic uncertainty, as inflation lingers and interest rates remain elevated. That uncertainty has cost middle-market companies an average of $21 million dollars last year, PYMNTS found.

Additionally, the smaller the firm, the greater the impact of that loss.

“For those CFOs who manage small- to mid-market companies (with revenues between $100 million and $250 million), a $21 million loss can have a far greater impact than it does for CFOs managing larger corporations (those earning $750 million to $1 billion annually),” PYMNTS wrote in April. “For these smaller middle-market organizations, such a loss could likely upend day-to-day operations and unravel strategic planning for the reminder of the year.”

The data comes from the PYMNTS Intelligence study “2024 Certainty Project Report,” which drew on survey results from 60 CFOs of U.S. companies that earned annual revenues between $100 million and $1 billion last year. The report found that these firms’ CFOs are particularly exposed to economic uncertainty.