Economic & Trade Risk Insights
 

Gearing ratio is one way to measure a company’s financial health. It involves comparing the capital to the amount of money the company has borrowed.   It is an indicator of how “levered” the company is. In other words, it refers to the extent to which debt finances the operations of a company.   A high gearing ratio shows that a company has a high level of debt compared to its equity. Depending on the industry, this may (or may not) be an indicator of financial risk.

Maintaining a healthy cash flow is the hallmark of any well-run business. But the ever-present risk of late or non-paying buyers can quickly jeopardize that stability, especially in a climate of economic uncertainty and growing insolvencies.   Several approaches can offer you early warning signs of distressed buyers who may be struggling to pay, as well as provide varying levels of protection against bad debt. Here are six strategies that are worth considering when seeking to safeguard your business against growth-inhibiting cash flow disruptions.       Download brochure

As every business person knows, there can be a big, long gap between revenues and actual cash flow – especially when you have customers who demand “generous” payment terms and wait until the last day to remit.    One way to bridge that gap is by borrowing against the value of the invoices you’ve issued… a procedure called invoice financing. What is invoice financing? How does invoice financing work? Is it a good fit for your business? In this article, we provide an invoice finance definition and explain how it can help you improve your working capital and safeguard your cash flow.

Late payment refers to the failure to pay a debt or invoice by the due date agreed upon between the creditor and the debtor. It can refer to both personal and business debts.  Late payments are responsible for a quarter of all business failures. But even one late payment can cramp your cash flow. Legal measures to recoup the funds can create constraints on your time and resources. A late payment letter may not be sufficient. In this article, we discuss how to handle overdue payments and how to avoid them in the future.

A succession of macroeconomic shocks in recent years has forced organizations to reconsider the best approach to de-risking their global trading networks. Here we explore how to manage economic risk in international business, showcasing four ways companies are managing economic risk factors in order to expand their business globally.

Against the backdrop of resilient economies and booming markets despite monetary tightening, global financial assets of private households recorded strong growth in 2023.