FAQs

What is C2FO?

The C2FO program is managed on behalf of your customer to help your business improve cash flow. Instead of borrowing money from a third-party or using a static or “less-than dynamic” discounting methods, C2FO gives suppliers the power to negotiate early payment, on demand, at a low cost. Today we serve companies around the world and handle millions of transactions and billions of dollars of early cash flow delivery each year. C2FO is collaborative cash flow optimization.

C2FO is NOT:

  • A Factoring service
  • Supply chain financing
  • An electronic payment alternative
  • A bank loan

Is C2FO the same as ACH or EFT (electronic check)?

No, C2FO is not a replacement, nor an alternative, for electronic funds transfer. If you want to sign up for ACH or EFT with your customer, you should contact them directly.

Are suppliers required to register for C2FO?

C2FO is an optional program. However, we encourage all suppliers to register, at no cost, to enable use of the program in the future if needed.

What are the main reasons companies use C2FO?

Most companies use C2FO because it costs less than other working capital funding options. Many use it to improve balance sheet metrics during quarter-end reporting. Others accelerate cash flow so they can take advantage of discounts from their suppliers. So whether you’re looking to handle seasonal peaks and valleys in your cash flow or just like being paid early or on time, C2FO is the most efficient way to improve your working capital position.

What are the main benefits of C2FO?

  • Provides you an additional working capital funding option at competitive rates
  • Lowers your days sales outstanding (DSO)
  • Allows you to schedule receipt of payment to optimize cash flow
  • Reduces your cost of borrowing
  • Creates visibility to approved invoices in a secure online environment
  • Makes it possible to take advantage of more early payment income from your suppliers

How much do I need to offer to be awarded early payment?

With C2FO, you determine the rate you are willing to pay to receive early payment. C2FO recommends that all suppliers submit their offers as an interest rate versus a discount amount. This will allow you to compare C2FO funding rates to other sources to help you save money. However, the ability to place and view offers by discount amount is also available.

When does The C2FO Market award early payment?

The market clears daily (M-F) 12pm EST / 5pm GMT. All early payment offers that come in before that time will be considered for early payment. When the market clears, companies that requested early payment will be notified via email of any invoices that have been awarded early payment. At the same time, any company that has invited suppliers to take advantage of early payment will be notified via email if any of those invoices are to be paid early. In both cases, an award file will be available for download to manage the early payment processing.

How do I get paid early?

Once your early payment offer has been accepted, you will continue to get paid directly from your customer, just like you do today – only faster. C2FO does not make payments on behalf of your customers, we simply facilitate the early payment collaboration between you and your customers or suppliers in a market based environment.

When will I be paid if my offer is accepted?

When you are awarded early payment from your customer through The C2FO Market, your early payment will be processed on your customer’s next pay date listed on your invoice summary and award file.

Where do I download my C2FO Award File?

After The C2FO Market clears each business day, you can visit your history to view your awards and download your associated award file. If you are receiving early payment, the award file will show you the details of which invoices are being paid early. If you are processing early payment, the award file will provide details on which invoices to pay for those invoices that were awarded.

What are the statuses of my invoices?

When viewing your payables or receivables, you will see a grid listing all the invoices that you loaded, or your customers loaded. Each invoice has an associated status depending on whether it is eligible for early payment. Note that to receive early payment, the invoice must be awarded when the market closes each day – intraday statuses can update at any time.

  • Clearing – This invoice, at this point in time, has earned a winning offer.
  • Eligible – This invoice is eligible for early payment, but does not currently have a winning offer.
  • Not Eligible Today – This invoice is ineligible for early payment for today’s market.
  • Not Eligible – This invoice is ineligible for for early payment.
  • Excluded for Today – This invoice has been manually excluded by a supplier and is not being included with today’s early payment offers.
  • Excluded – This invoice has been excluded by a supplier and is not being included with that supplier’s early payment offers at any time.

What types of invoice adjustments do you support?

C2FO wants to ensure that your suppliers are making early payment offers on their actual amounts owed. With that in mind, the adjustment service within C2FO will handle matching two types of adjustments to supplier balances with The C2FO Market.

1. Matched adjustments apply to the invoice with a matching Invoice ID.

2. Unmatched adjustments apply to invoice(s) that match the adjustment amount, but haven’t been used as a matched adjustment.

Is C2FO a safe and secure funding option?

The C2FO Market has delivered billions of dollars in early payment cash flow to companies and is growing rapidly. Because C2FO only facilitates the price discovery for early payment, there is no-risk involved. You will continue to be paid directly from your customer, just earlier.

Can’t I just borrow cash from a bank?

Third party financial intermediaries require risk-based underwriting, complicated paper work, higher rates and recurring fees in general. Plus, those interest expenses hit your income statement. With C2FO, there is none of that. You get access to your cash, with no liability and no hassle.