"On-Demand Treasurer"

In the modern financial landscape, the role of an "on-demand treasurer" has emerged as a flexible and efficient solution for organizations seeking specialized financial expertise without committing to a full-time position. But what exactly does this term mean? How and when using such a solution for corporations? Outsourcing of services becomes key in many areas and corporate treasury is a perfect function to be outsourced to specialists.?

Definition of "On-Demand Treasurer"

An "on-demand treasurer" refers to a financial professional who provides treasury services to an organization on an as-needed basis. This role is akin to a consultant or freelancer who is brought in to handle specific tasks or projects, allowing companies to leverage high-level expertise without the overhead costs associated with a permanent hire.

Key Responsibilities

The “classic” responsibilities of an on-demand treasurer can vary widely depending on the needs of the organization, but typically include:

·?????? Cash Management: Overseeing the company's cash flow, ensuring that there is sufficient liquidity to meet its obligations while optimizing the return on excess cash.

·?????? Financial Risk Management: Identifying and mitigating financial risks, including those related to interest rates, foreign exchange, and credit.

·?????? Funding and Capital Structure: Advising on the best ways to raise capital and manage debt, including negotiating with banks and other financial institutions.

·?????? (Short Term) Investment Management: Managing the company's investment portfolio to ensure it aligns with its financial goals and risk tolerance.

·?????? Strategic Planning: Providing insights and recommendations to support the company's long-term financial strategy.

Benefits of an "On-Demand Treasurer"

Corporate organizations can reap numerous benefits from engaging an on-demand treasurer, including:

·?????? Cost Efficiency: Companies only pay for the services they need, avoiding the expense of a full-time salary and benefits.

·?????? Flexibility: The ability to scale services up or down based on current financial needs and market conditions.

·?????? Expertise: Access to specialized knowledge and skills that might not be available internally.

·?????? Objectivity: An external perspective can provide unbiased insights and recommendations.

Scenarios for Engagement

An on-demand treasurer can be particularly valuable in scenarios such as:

·?????? Interim Needs: Covering for a full-time treasurer who is on leave or has departed until a permanent replacement is found.

·?????? Special Projects: Handling specific initiatives like mergers and acquisitions, refinancing, or significant treasury system implementations.

·?????? Peak Periods: Providing additional support during busy times, such as financial reporting periods or audits.

·?????? Start-Ups, Private Equity Funds, Funds service providers and SMEs: Offering expertise to smaller companies that cannot afford or do not require a full-time treasurer.

A potentially increasing role for skilled treasurers? Certainly

The role of an "on-demand treasurer" is a versatile and pragmatic solution for modern businesses. Why hiring a fully time expert when the need is limited, the activities not too complicate and company size too small to justify an expert on a permanent basis? By hiring a treasurer on-demand, companies can access top-tier financial expertise precisely when they need it, ensuring they remain agile and competitive in a dynamic market environment. As bank relationship becomes more and more complex, and debanking risk is growing, it may be smart to hire a specialist to demonstrate its bankers the goodwill and professionalism (without supporting a full-time skilled employee salary). This solution should grow over time, especially with new more accessible technologies and banking platforms.

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Fran?ois Masquelier, CEO of Simply Treasury – Luxembourg September 2024

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