GTreasury and C2FO Team to Improve Liquidity Forecasting

Treasury management company GTreasury has launched a partnership with working capital platform C2FO.

The companies say their collaboration, announced in a news release Thursday (June 8), gives treasurers a cash management/early payment tool that boosts liquidity forecasting while optimizing cash flow.

“In addition to solving everyday liquidity needs, corporations are navigating economic shifts and tightening lending standards that will reduce access to capital,” the companies said. “Flexible liquidity management solutions that support end-to-end cash visibility are vital for continued enterprise growth and planning.”

According to the release, customers can use GTreasury’s products to monitor costs, portfolio value, and cash reserves, while also predicting liquidity requirements with the company’s artificial intelligence (AI)-powered forecasting tool.

With the partnership, companies will be able to access liquidity and improve cash flow by speeding supplier payments, either via their balance sheet or C2FO’s funding partners, while also giving businesses better visibility into their cash positions.

The collaboration is happening at a time when small and medium-sized businesses (SMBs) are having increasing trouble gaining access.

“A historically underbanked segment, it is becoming more difficult for SMBs to borrow as the economy tightens and macro conditions worsen,” PYMNTS wrote last month.

Research in PYMNTS’ “Main Street Health Q1 2023: Using Finance to Ease Recession Fears,” a collaboration with Enigma, shows that close to three-quarters of smaller businesses (74%) don’t have access to the equivalent of at least two months’ revenue in financing, while 17% reported having access to emergency funds at all.

PYMNTS data also shows that the smallest Main Street SMBs are also at the greatest risk of closure if they run into a cash flow shortfall. The smaller the operation, the less likely it is to have easy access to emergency financing.

And even SMBs that earn millions in revenue each year aren’t immune to financing challenges, with 40% of companies with $1 to $10 million in annual revenue operating without access to readily available emergency financing to help them weather a sudden drop in sales.

It’s this lack of access to capital that led to an earlier C2FO partnership, the company’s collaboration in March with the Schulz Family Foundation to offer $100 million in loans to small and diverse businesses.

“We know that when businesses have equitable access to the capital they need — when a financial system is truly inclusive — we all win,” C2FO founder and CEO Alexander “Sandy” Kemper said in a news release. “Our partnership with the foundation will increase the number of loans we are able to give, supporting even more businesses than ever with easy, equitable and flexible access to capital.”

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