The hidden cost of global growth

By Graham Sheridan

Why payment friction is more than a back-office issue

For manufacturing CFOs, global expansion should deliver scale, reach, and resilience. But beneath the surface, cross-border payments are quietly eroding margins, locking up liquidity, and exposing supply chains to avoidable risk.

The challenge isn’t just complexity, but fragmentation too. Multiple banking partners, manual reconciliation, and currency mismatches are turning growth into a financial drag. And the cost is rising.

Since 2015, UK manufacturers have seen a 50% increase in net working capital days, meaning more cash tied up in inventories and delayed supplier payments, precisely when agility matters most.

Are supplier payments putting your supply chain at risk?

Manufacturers are navigating longer lead times, tighter credit conditions, and rising requests for advance payments. Offshore suppliers, facing their own FX exposure, are asking for faster settlement, often in foreign currencies.

Yet manual processes and fragmented payment rails (SWIFT, SEPA, ACH, PIX) can introduce friction at every step: delays, rejections, and errors may that jeopardise continuity.

Every bounced transfer or misrouted payment isn’t just an administrative issue, but a potential production stoppage.

Cleared payments can make the difference. Moneycorp’s validated payment network pre-verifies accounts and flags returns automatically, allowing for funds to arrive in-country, on time, and in full. By enhancing operational efficiency, you’re also building resilience into your supply chain.

Currency mismatches: The silent margin killer

Many cross-border contracts fix prices months before settlement. In that window, FX volatility can quietly eat into margins.

Many businesses manage currency exposure in ways that suit their immediate needs, whether that’s tracking it informally, using spot conversions, or approaching risk management on a case-by-case basis. The more strategic approach is to treat foreign exchange as a managed input, not an uncontrollable cost. With structured FX policies, budget-rate planning, and scenario modelling, CFOs can forecast confidently and maintain margin integrity across complex supply chains.

Whether through forward contracts for committed flows, currency options¹ for uncertain bids, or averaging in, the goal isn’t to predict markets, it’s to be prepared for surprises.

¹Currency options may not be appropriate for all prospective clients. To hedge your business' balance sheet exposure, additional products and services are provided by our Moneycorp Financial Risk Management Limited business.

ERP-integrated payments: From manual effort to strategic control

Spreadsheet-based reconciliation and siloed systems expose finance teams to cost leakage, compliance risks, and reporting delays. It’s an invisible drag on productivity and control.

Technology has come on in leaps and bounds over the last few years, with integration allowing your most critical platforms to work together seamlessly. Moneycorp’s API-driven integrations with leading ERP platforms, including NetSuite, QuickBooks, and Xero, enable real-time data flow, automated reconciliation, and seamless payment execution. No code. No disruption. Just visibility and control.

Manufacturers using integrated platforms report a 27% faster month-end close and higher supplier satisfaction. That kind of impact goes beyond process improvement; it reflects the broader performance gains unlocked when systems work in sync.

Liquidity access: The overlooked enabler of resilience

Global growth demands liquidity, not just capital. Longer receivables, higher inventory buffers, and FX settlement lags all strain working capital, with many manufacturers still feeling the strain of managing cash through static accounts and dispersed banking relationships.

Modern finance leaders are rethinking how liquidity is deployed across jurisdictions. Multi-currency accounts and centralised treasury management are helping CFOs position funds strategically - balancing access and control.

This kind of liquidity agility transforms financial resilience. It allows manufacturers to respond to volatility, not react to it - keeping operations moving, suppliers confident, and growth ambitions on track.

From friction to foresight

The real cost of global growth often hides in plain sight. Every delayed payment, trapped cash balance, and unmitigated exposure slows decisions and weakens resilience.

For manufacturing CFOs, the opportunity now is to turn payment infrastructure into a lever of agility, one that strengthens liquidity, builds supplier trust, and maintains margins across every market.

With over 45 years of FX and payment expertise, Moneycorp delivers foreign exchange risk managements and international payments built for scale, not one-size-fits-all solutions, but systems designed to help you absorb shocks and unlock performance.

Graham is Head of Sales for Industrial, Logistics and Business & Professional Services at Moneycorp. A seasoned FX risk manager, he brings deep expertise gained from working with a diverse range of corporate clients, asset managers, and insurers throughout his career. Graham now leverages this experience to help businesses navigate market volatility with confidence, delivering tailored FX strategies that are both effective and efficient.

Be aware of currency risk. Views expressed in this commentary are those of the author, and may differ from your appointed Moneycorp representative. This commentary does not constitute financial advice.

Helping global businesses move forward

At Moneycorp, we've helped clients trade over £79 billion across 130+ currencies, and we currently serve more than 11,000 active clients worldwide. Whether you're entering a new region or scaling your global footprint, we bring the tools, insights, and expertise to help you thrive across borders.