Michael Shang

← Insights

Commercial BankingMarch 2026

Why working capital conversations break down between banks and exporters

When cash-cycle language, covenant logic, and operating reality drift out of sync—and how to reset the dialogue before positions harden.

Overview

When cash-cycle language, covenant logic, and operating reality drift out of sync, both sides can be acting in good faith and still talk past each other. The exporter sees timing and customer concentration; the bank sees structure, covenants, and how stress would propagate.

What helps

Plain language about conversion cycles, concentration, and what breaks first under stress tends to move the conversation more reliably than another round of generic reassurance.