If your company has a liquidity need not being met in the current economic crisis, C2FO has several financial tools that can help.
In recent weeks, several company leaders have shared with us their stories about how they are adapting to the economic crisis brought about by COVID-19. Obviously, at a time when the average small business in the United States only has 27 days of cash on hand, there are liquidity needs for many companies.
However, many of the stories we’ve heard reflect optimism and resilience.
I recently had a conversation with the founder of a hardware store vendor that has been a C2FO customer since 2015. This company first began working with us by accelerating payment on its Amazon receivables through the C2FO platform. Later, the company opened a revolving line of credit based on its other customer invoices through our Receivables Finance offering.
The president of this Virginia-based company told me last week that, while he’s fearful of the coronavirus’s ultimate impact on lives and the economy, he feels secure that demand for his products will remain strong and that he has the right funding in place to support that growth.
In spite of all the economic turbulence in the world today, this business owner is optimistic about the future. It’s a healthy reminder that options remain for companies of all sizes to secure much-needed liquidity during this challenging time.
When previous solutions aren’t enough
In recent weeks, the COVID-19 pandemic has closed businesses, forced workers to stay at home and placed incredible stress on credit and trading markets. This has placed a tremendous amount of uncertainty on the economy. Banks are required to react to this uncertainty by exercising greater caution when underwriting new loans to businesses.
If you work today with C2FO, it’s because one or more of your customers offer early payment programs on our platform where suppliers like you can accelerate receivables in exchange for discounts that you determine. However, we understand that participating in early payment may not provide all the capital needed to operate your business.
The good news is that C2FO is positioned to offer greater flexibility in times like these. We are empowered by our investors to help however we can. We are nimble, technologically savvy, and we understand our participating suppliers and their businesses. This gives us a head start in adapting to new circumstances.
Got a capital need? Let’s talk.
If your company has a capital need that is not being met, we should get in touch. Our financial offerings range from solutions serviced by C2FO to placement with a carefully selected partner through our Capital Marketplace.
Receivables Finance enables your company to create a revolving line of credit based on open invoices with your customers. It’s specifically designed to integrate with C2FO’s early payment program as part of a comprehensive working capital solution. Receivables Finance is different from a term loan or a traditional line of credit because your customers make the payment, so there’s no need to add a new payment schedule.
C2FO’s Capital Marketplace is a network of carefully selected and screened funding partnerships that C2FO has built up over the years. Our trusted partners range from multinational banks to asset management companies and specialty finance providers. All of them have met our criteria for integrity and security, and will allow you to continue participating in your customers’ early payment programs through C2FO.
If our funding solutions are not a good fit at this time, we can work with you to secure more capital through the U.S. Small Business Administration. The SBA is providing guaranteed, low-interest loans of as much as $2 million to companies affected by COVID-19 and will soon have more funding capacity through the federal government’s $2 trillion stimulus package.
It’s a tough, trying time for all of us right now, but the situation is far from hopeless. At C2FO, we want to be a funding resource that helps you see beyond this crisis, to a more optimistic future for your company.