All across North America and EMEA, middle market companies regularly struggle to manage their working capital efficiently despite little support from the traditional banking community, reports a new survey by leading financial software company, Misys. The problem? Banks are simply not able to effectively meet financing demands due to technical deficiencies and increased regulation. In fact, more than half of the companies surveyed cited a lack of effective, unified and automated solutions as the biggest hurdle to meeting working capital needs.
Because today’s corporations operate on a global scale, digital and digitized working capital finance solutions are becoming more and more necessary to help corporations better manage cash flow. The ability to get a singular, big-picture view of balances and transactions is paramount to continuing smooth operations, according to survey findings, as is the ability to make secure payments online. Additionally, a top priority is the ability to easily integrate transactions with enterprise resource planning (ERP) and trade management systems.
Overall, 28 percent of survey respondents said access to working capital funding has become more difficult in recent years. Of those who have received funding, 24% say they finance needs through a combination of traditional banks and non-bank alternatives, with 9% reporting a greater reliance on alternative funding than two year ago.
Luckily, companies like PrimeRevenue, the leading provider of cloud-based working capital solutions, are stepping in to fill the working capital financing gaps. In July 2015, PrimeRevenue launched a new venture called PrimeRevenue Capital Management, which offers both alternative funding sources for corporate clients and investment opportunities for investors looking to access new income sources. The new venture, based in London, allows businesses to select from a broader pool of capital than what is available through traditional channels.