If your business faces seasonal peaks and valleys, C2FO can help you manage the gap between the production of goods and payment from your customers.
C2FO helps you access early payment so you can focus on your business, not your financing, during your busiest months. Having available cash also helps fund marketing to maximize your seasonal sales.
You can use C2FO to supplement your line of credit when your working capital needs are greatest. C2FO can offer a lower cost of borrowing than your line of credit or other funding options. Less debt means more cash to invest in expanding your product line and market ahead of your next busy season.
For 40 years, InCharacter Costumes has been a pioneer in the mass market Halloween industry. As a highly seasonal business, InCharacter Costumes starts the manufacturing process as early as January and doesn’t realize payment for their sales until November.
Ninety-nine percent of our business is derived from Halloween costume sales which means that we’re making sales as early as March of every year and we won’t be collecting until November of that year. We are still paying for the manufacturing of those goods that we are selling to retailers. Cash is going out. Receivables are building up. With the introduction of C2FO, my cash flow problems are few and far between.
— Robert Torre, Controller, InCharacter Costumes