Honeywell has a significant—and expanding—presence in China. But managing a treasury function there requires creative thinking. “China is a very unique market,” says Lawrence Chang, China treasury manager for Honeywell. “Its banking system is different from those of other countries. We have to understand the banks' mind-set and find a mutually beneficial way to enlist their cooperation, while at the same time controlling risk.”

These were top-of-mind considerations when the global conglomerate looked at revamping its credit facilities in the country. Its Chinese businesses are cash-rich, but many require bank guaranties—such as warranty bonds, prepayment bonds, and performance bonds—as well as bank acceptance drafts, which are a standard method of payment within the Chinese auto industry. Historically, each of Honeywell's four legal entities in China maintained a separate line of credit with a local bank branch to issue these agreements.