Finablr stands as a cross-border payments, payment technology, and general FX provider. As it stands now, the company stated that it was taking urgent measures in order to accurately assess its current position when it comes to both its liquidity and its cash flow.
The Perfect Storm
Due to a number of circumstances that chose the perfect time to compound each other, Finablr is in an awkward position in terms of liquidity. While there is a range of factors, the major ones are worrisome. The first such factor is the spread of COVID-19, causing a mess of travel restrictions.
Due to these restrictions, the demand for foreign exchange and connected payment services have started to drop. As a result, the movement of physical currencies that a company like Finablr relies on is on a steady decline.
Other factors include the downgrade of Travelex’s bonds, Travelex itself being a subsidiary company of Finablr proper. This comes alongside a liquidity squeeze on both the operational business level, as well as the Group itself.
This, coupled along with the fact that public perception associates Finablr with NMC Health PLC, which in reality has independent finance, operations, and management from the Company proper, has given high levels of stress on the company’s cash flow.
Knowing Where You Are To Go Forward
Finablr pointed out that these factors have placed a noteworthy restriction on the company’s overall availability of daily liquidity. The company needs this liquidity in order to maintain adequate business management, as well as to help negotiate longer-term financing. As the old saying goes, you need to spend money to make money.
Due to the fast-developing nature of the events and circumstances surrounding Finablr at this point, the company is in desperate need to complete its liquidity and cash flow assessment.
Only once the company knows its position in both these subjects, will they be capable of negotiating the necessary steps to address its short- and long-term financing needs for the future.
Nothing To Worry About
Once its assessment is done, the Board of Finablr plans to appoint an independent financial advisor as soon as possible in order to help advise the company in these matters.
After the Board discussed the matter with the promoter shareholders, executive management, in meetings with the Audit Committee, as well as independent auditors, the Board has been given certain assurances. These assurances pertain to undisclosed related-party transactions, or otherwise off-balance-sheet or unrecorded financing arrangements, more accurately that there isn’t any.