Challenge Your Exam Readiness With Our Free CTP Practice Questions

Negotiating credit facilities is a core responsibility of treasury professionals, and it hinges on strong relationships with banks and financial institutions. Banks evaluate both the financial health of the company and the quality of the treasury department’s relationship management. By cultivating trust, providing transparent communication, and maintaining consistent business with banking partners, companies can negotiate lower interest margins, reduced fees, and more favorable covenants. Internal functions such as HR or vendors are important for operational coordination, but they do not directly influence credit facility negotiations. External relationships with banks and capital providers ensure that the firm has reliable access to liquidity when needed, reinforcing treasury’s strategic role in managing both costs of capital and funding availability. Strong bank relationships can also be critical in times of market stress, allowing companies to secure credit when weaker competitors cannot.