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Tradewind Finance examines shifting global trade routes and capital pressures
Tradewind Finance recently hosted a global webinar titled ‘Beyond the Horizon: Rethinking Trade Routes from Far East to Americas’ to address how geopolitical shifts and changing sourcing patterns are impacting global trade. The discussion focused on supply chain shifts and increasing working capital pressures.
Data from Allianz Trade indicates that the global cash conversion cycle has lengthened, with companies taking an average of 67 days to convert operational cash into collected revenue. This figure is three days above the ten-year average. Inventory management is a primary driver, as companies move away from just-in-time models toward maintaining larger reserves.
Asia has emerged as a significant outlier in these trends. The region's cash conversion cycle reached 70 days in 2025, with forecasts suggesting it could reach 72 days in 2026. This is driven by a trend where Asian companies are paying suppliers faster while facing longer customer payment terms, which currently stand at 59 days.