The familiar sounds of small to mid-sized businesses in motion have faded as the global pandemic continues to rattle the economy.
On Thursday, the U.S. Small Business Administration said the more than $350 billion in funds aimed at supporting small businesses has been exhausted.
For many of our large enterprise clients, options for paying their small and mid-sized suppliers early during this economic crisis are limited. Small and mid-sized businesses depend on large enterprises to unlock trapped cash through early payment.
C2FO understands the responsibility large companies face as they balance their desire to power suppliers with working capital, while reserving cash and strengthening their own balance sheets.
Here at C2FO, we’re working to keep markets open for our buyers — and their suppliers — by offering alternative solutions to accelerate payment to small and mid-sized businesses.
In these challenging times, the Account Management team at C2FO has two primary objectives: Re-open closed C2FO early payment markets and help enterprise clients support their small and medium-sized businesses.
If you are a large enterprise with an early payment program through C2FO, the most important way you can ease the plight of small and mid-sized businesses is by keeping your marketplace open.
As we strive to be a trusted advisor during these uncertain times — and all times — we’re working to give you the flexibility you need to protect your business and the small businesses that support it.
Early payment options, preferential pricing for small and mid-sized businesses and third-party funding are just a few ways that C2FO is helping to inject liquidity back into enterprise supply chains.
Open the markets and keep them open
Small and mid-sized businesses are struggling to stay afloat with the limited cash they have on hand.
Although the cash has stopped flowing, the bills have not. Rent is due and small businesses have their own outstanding accounts payable.
If you’ve closed your C2FO early payment market, the supply chain will suffer, as much-needed liquidity struggles to reach businesses in need.
The most important thing you can do is look at options to open the market back up.
Whether that’s through designating cash specifically for small businesses or creating markets with preferential pricing, you can help small and mid-sized businesses affected by COVID-19 build more liquidity at a reduced rate.
For example, C2FO and Walmart recently launched an early payment program aimed at helping small and mid-sized businesses that have approved invoices get paid sooner. Walmart is offering best-in-class pricing to its small business suppliers. In exchange, C2FO has waived all transaction fees.
Walmart has hundreds of small and mid-sized suppliers participating in the marketplace. As of April 15, millions of dollars have been released to suppliers in the U.S. and Canada.
Similarly, Intel is offering an early payment program through C2FO for small and mid-sized businesses. Since the market opened in mid-April, Intel has accelerated $10 million to businesses around the world.
Flexible ways to help your supply chain
Large enterprises like Walmart and Intel are keeping supply chain health and continuity at the forefront of their business operations. The breadth of each of their supply chains — thousands of small and mid-sized businesses — depend on these early payment programs to survive.
For companies that are interested in accelerating payment but don’t necessarily want to tap into their own cash reserves, we’re offering Dynamic Supplier Finance (DSF), one of C2FO’s Capital Finance products that allows third parties to fund early payment on behalf of a buyer.
DSF helps prioritize payments to small and mid-sized businesses that are in dire need of cash without sacrificing their balance sheets.
To learn more, contact your C2FO account manager. We’ll seek to understand your current liquidity position and recommend the best option for your situation.
The bottom line:
The Account Management team at C2FO is here to help support your business by supporting your supply chain. Providing more flexible funding options means your suppliers have peace of mind during these unprecedented times.