Monetizing Government Receivables

In a challenging borrowing environment, corporate treasurers may find it difficult to secure economically priced liquidity. For corporates across a range of sizes and sectors who have government receivables, monetizing those government receivables represents an efficiently priced, diversified funding source that can be supportive of broader working capital goals. 

This article provides insight into the following areas:

• Borrowing In the Current Environment. Today, borrowers face higher borrowing costs as a result of increased interest rates aimed to curb inflation and overall tighter lending conditions. However, now that inflation appears to be on a cooling trajectory, central banks may begin to shift to less restrictive policy.

• Why Corporates are Monetizing Government Receivables. Corporates of all sizes have many reasons for seeking financing; in a rapidly shifting technological landscape corporates are making the investments in artificial intelligence and manufacturing capability that will fuel the returns of tomorrow. Elevated funding costs have been a catalyst for corporates to reevaluate their funding structures as many seek ways to limit growing interest expense and minimize borrowing costs.

• How Corporates Can Monetize Government Receivables. With uncertainty surrounding borrowing costs and to what extent central bankers will reduce policy rates, accessing liquidity at the most efficient rates possible remains a chief concern for borrowers.

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