Corporate Finance and Procurement
Corporate finance is about managing a company’s money—how it raises capital, allocates funds, and balances risk and return to grow value. Procurement sits squarely in this picture because every purchase decision affects cash flow, profitability, and risk exposure.
From a finance perspective, procurement isn’t just about getting the lowest price. It’s about making sure spending aligns with strategic goals and supports healthy financial metrics. Key connections include:
Cash Flow Management – Payment terms, bulk purchasing, and supplier financing can free up or tie up working capital. Finance teams often collaborate with procurement to negotiate terms that improve liquidity.
Cost of Capital – Choosing between leasing, buying, or using supplier credit affects the company’s capital structure and borrowing needs.
Risk Control – Long-term supply contracts, currency exposure, and commodity price swings create financial risks that need hedging or careful contract design.
Value Creation – Strategic sourcing, supplier partnerships, and sustainability initiatives can reduce total cost of ownership and enhance long-term profitability.
In practice, strong integration between corporate finance and procurement—shared data, joint planning, and clear performance metrics—helps a business secure the goods and services it needs while protecting margins and supporting growth.
- Teacher: Muhammad Awwal Abubakar
- Teacher: Prof. Mustapha Bagudo