The RCF ( Rolling Credit Facilities )
Trading books are closed for the year, and PnL results are quietly blowing everyone’s mind internally.
However, Executive Committees around every Boardroom are fully aware that’ RCF’ ( Rolling Credit Facilities ) won’t be as generous as they’ve historically been in the coming years. While profits are up in their billions, the topic of ‘ Cost evaluation’, needs to be executed more than ever, hence the appetite for ‘ Change’ and visits from consultants.
With Operating Costs expected to continue to rise into 2023 and way into 2024, preservation of the profits made in the commodities sector in the last few years needs to be protected in order to weather the storm ahead.
While Banking relationships become even more critical next year, which historically they’ve always been in commodities, ‘ Lending’ will become tighter, as more businesses will have to show their banks what they are doing internally to bring down costs in order to safeguard their investments.
While most are fully equipped to ride the waves of a Global Recession and Geopolitical unrest, it’s the ones investing time to evaluate their ‘Running Costs’, by either reducing them or reallocating them to the IT & INNOVATION Budget. Without this strategy in play, growth will be slow.