Enabling Working Capital Optimisation for a Global Technology Leader through Structured Trade Solutions
Case Summary
A leading global technology company specialised in designing manufacturing and marketing of intelligent hardware and operating in India was looking to improve its working capital metrics. As their procurement volumes expanded 2X, the company needed a structured financing solution that could extend payable cycles without disrupting supplier relationships.
CredAble designed and executed a Flash Title Trade solution, enabling the company to release liquidity locked in payables, extending DPO by 35 days, all while maintaining uninterrupted supply chain operations.
The Challenge
The client, a global technology hardware manufacturer, faced increasing pressure on working capital as procurement volumes doubled across a distributed network of suppliers located across the country, creating strain on payables and inventory financing requirements.
The Central Treasury department was looking to improve working capital efficiency by extending payable cycles. The short payable days resulted in:
- Shortfall in available working capital
- Long cash conversion cycles, affecting financial metrics
- Lack of liquidity to support business growth without dependency on debt
Directly stretching supplier payment timelines risked creating liquidity stress for suppliers, possibly hampering long standing relationships, thus requiring a structured financing solution.
The Objective
To address these challenges, the company required a financing structure that could enhance working capital efficiency without altering the existing supply chain framework.
The key objectives included
- To extend payable cycles and improve financial metrics through structured trade finance
- Preserving supplier liquidity and maintaining supply chain stability
- Improve cash conversion cycle for corporate treasury
- Optimising working capital efficiency to support future growth initiatives
CredAble identified a Flash Title Trade structure as the most suitable model to achieve these objectives.
The Approach
CredAble worked closely with the client and financing partners to design a Flash Title Trade solution that aligned with the company’s operational and financial goals.
Flash Title Trade is a structured trade finance model where ownership of goods temporarily shifts through an intermediary structure, enabling inventory-backed financing without disrupting supply chains.
The structure enabled a master supplier aggregation, bringing together 4–5 large suppliers located across India under a single financing framework. Multiple financial institutions were onboarded to support the scale of procurement.
A dedicated cross-functional team spanning finance, business, legal and technology was deployed to oversee end-to-end execution, streamline documentation and ensure efficiency across activities.
The Results
CredAble’s Flash Title Trade solution delivered tangible impact across financial operational, and strategic fronts.
- High-Value Working Capital Unlocked: The structure unlocked approximately ~₹620 crore of working capital liquidity, strengthening the company’s financial flexibility.
- Payable Days Extended: The company was able to extend its payable cycles by 35 days, significantly improving liquidity without placing financial pressure on suppliers and ensuring supply chain visibility.
- Optimisation of cash conversion cycle: By extending payables while maintaining supplier liquidity, the company was able to optimise its balance sheet and position itself to seize future growth opportunities.
- First of its kind for the client: CredAble deployed the first ever Flash Title Trade Structure for the international technology company’s India operations.
Why Structured Trade Finance Works for Corporates?
Unlocks liquidity from trade payables
Converts payables into immediate working capital
- Extends payment cycles seamlessly
Improves DPO without impacting supplier cash flows
- Enables balance sheet optimisation
Enhances working capital without causing strain on balance sheet
- Aligns financing with trade flows
Links funding directly to underlying transactions
- Improves cash conversion cycle
Drives efficient payables and liquidity management
- Scales across supplier ecosystems
Supports multi-supplier, multi-location structures
Think Working Capital… Think CredAble!