Weathering the Storm with C2FO Through Dynamic Supplier Finance

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Over the last few weeks, countless companies have faced financial pressure as states shut down commerce to prevent the spread of the coronavirus. 

For small- and medium-sized businesses, cash flow has stagnated, illuminating the need for cohesive strategies that open up access to working capital.

Large enterprises act as the heart of supply chains, pumping blood (or vital cash) to the economy’s essential organs. If these large companies aren’t able to power suppliers with working capital, there are serious downstream effects on the global economy. 

Here at C2FO, we’re working to keep markets open for our buyers and suppliers during this uncertain time by unlocking cash and pushing it through the global supply chain and pumping life back into small and medium-sized businesses. 

One way we’re helping buyers and suppliers through this economic downturn is through alternative funding programs that enable enterprises to quickly inject liquidity back into the economy. 

As the effects of the coronavirus continue to impact businesses of all sizes, I’ve seen a growing demand for Dynamic Supplier Finance (DSF), one of the Capital Finance products from C2FO that allows third parties to fund early payment on behalf of a buyer. 

DSF provides a more integrated and flexible funding option for companies that are eager to support suppliers through the C2FO early payment system, but may not want to tap into their own cash reserves.

For example, if you’re a retailer that has closed your brick-and-mortar stores, you are solely reliant on e-commerce sales to close revenue gaps. If you continue purchasing from and paying suppliers, you may be burning through cash because there’s little revenue coming in the door. 

These buyers, and dozens of others across industries, have been turning to us to quickly implement DSF so their suppliers — those crucial small- and medium-sized businesses that may not have enough cash on hand — have the liquidity needed to weather the storm for the next several months.

How does DSF work?

Over 400,000 companies work with C2FO today to accelerate receivables from one or more of their customers in our network. Whether you are one of the companies already accelerating receivables with your customers in our network or someone new to C2FO, DSF is a simple upgrade that allows you to offer always-on financing through our funding network for payments you may not want to make yourself. 

The program gives you the flexibility to support suppliers through early payment, while staying mindful of your own liquidity and keeping your business well-capitalized — an important factor to consider in today’s environment. 

Obviously a global pandemic is very rare and the capital markets have been exceedingly unpredictable as a result. I’ve heard from numerous Fortune 500 companies in the past three weeks who understand how important it is to support suppliers through this tumultuous time and are working with us to quickly stand up this program.

With DSF, C2FO becomes the most flexible early payment program for you and your suppliers. Unlike other programs, you are always in complete control. From managing KPIs by funding only intra-quarter payables to utilizing the program to mitigate threats from activist shareholders, C2FO now combines the power of your liquidity with funding from banks to help you pay on your terms.

Advantages of using DSF

The current economic climate is compelling companies to manage liquidity better and strengthen their balance sheets. It’s also pushing big companies to prioritize programs that keep suppliers alive and thriving. Fortune 100 companies in particular have pivoted to support small- and medium-sized businesses to help them survive this trying time. 

In the past two weeks alone, we launched specific programs with our largest clients that allow their small- and medium-sized suppliers to accelerate approved invoices for early payment at significantly reduced rates.

C2FO has the infrastructure and network to help scale your company. We’re working with the world’s largest companies so that we can advance our mission to deliver a future where every company in the world has the capital needed to grow. 

The bottom line 

We know supporting your suppliers is top of mind. Providing a DSF option means your suppliers have an always-on funding option. That flexibility drives higher usage and provides a valuable benefit to suppliers’ supply chain health. 

It’s important to remember that keeping your  suppliers’ liquidity flowing will help your business thrive. Capital is crucial for businesses of all sizes to emerge successfully when the storm has passed. 

C2FO can help scale your DSF program and keep it viable and thriving when the economy recovers. 

For companies looking to make a quick impact and support their small- and medium-sized suppliers, we have developed a fast-start option that allows you to implement DSF in about three weeks with no IT work required.  

If you’re interested in learning more about DSF with C2FO, please contact j.novak@c2fo.com.