The obsolete financial model of companies

When the financial crisis happened in our century, everyone pointed to financial institutions as guilty, but no one assessed their own responsibilities, and worse, their reality of obsolescence of certain corporate departments.

If we focus on the business model of what is in the organizational chart the financial department of most companies, we will identify that these departments are still a poor model of accounting services, and in the best or worst case, a company’s controlling model if the control management área, erroneously, fell to said financial department.

The debt policy, badly called “leverage” by companies to develop their growth, was one of the triggers of business crises that were generated at the time of the financial crisis.

It should be noted that a financial crisis should never affect an economic crisis to the same extent, since they are elements that are managed in parallel and that, although, they have convergences, these are not keys to creeping into the same cliff. The cause of them dragging is in the dependence that the accounting departments, rather than financial, had of the financial structures that entered into crisis.

Those who had less dependence were saved. It is now that many repeat that sufficient treasury capacity must be maintained in order to face new future crises. But this same sentence takes us to the same point that the other philosophy was trying to get out of, that of slowing down your growth due to the need to be able to generate that “life saver” that keeps companies from outside financial crises.

All these solutions, or lack of solutions lie in a harder reality for companies, and that is that their financial departments, or better called accounting departments, are not prepared for a business model of the 21st century. Those departments were designed a century ago, and have hardly suffered any alterations.

The financing models of companies, of their projects, …, have to be developed under a new vision of the opportunities that financial systems are giving us, and interestingly, environments such as the Petroleum trade, learned long ago to develop or take profit from them. These models require companies to directly or indirectly incorporate a new kind of expert outside the accounting and treasury systems that focuses their vision on international financial markets and opportunities, depending on the idiosyncrasy of the company, it can take advantage .

Business funds have and can be used for the growth of companies, and without risking these funds. The products to carry out all this new policy in the companies exist, only the experts in the companies or for the companies, that are able to make them available to them, are missing.

PLANET CLUSTER has been working on this type of products for some time, and evaluating how they are developed, always avoiding the generation of capital risks and guaranteeing a minimum return on these business capitals, which serve to carry out the growth or investment commitments of companies and governments.