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Stewart Stanton III, Managing DirectorFor smaller businesses, the backbone of any market, C2FO has been a boon. “C2FO is a simple and transparent technology available for such businesses to access their receivables, on-demand, exclusively at a price which suits their cost of capital,” says Stewart Stanton III, managing director at C2FO. Instead of waiting 90 days to receive their cash, for example, C2FO allows businesses to request early payments from customers in exchange for discounted invoices to convert their AR into immediate cash f low. By operating on this model, C2FO relieves the monetary and KPI pressures of companies by providing a debt-free working capital solution. It creates a closed knit transaction platform for suppliers, and customers, without the interference of any bank or other financial entity.
C2FO’s platform can benefit both enterprises as well as suppliers. While suppliers benefit from demanding early invoice payments at a preferred rate, enterprises can use C2FO to generate better returns on short-term investments and improve margins, EPS, and EBITDA. The platform can be easily integrated into the ERP system of an organization in no time and accessed by signing up with an online account.
C2FO is a simple and transparent technology available for such businesses to access their receivables, on-demand, exclusively at a price which suits their cost of capital
This discounting system of C2FO is purely market based and f lexible. Companies using C2FO to pay suppliers early have observed a growth of 600 basis points in earning incremental than their other short-term investment options. Some of the direct benefits for companies using C2FO also include maximization of Earnings before Taxation, Depreciation, and Amortization (EBITDA) and preservation of healthy Days Payable Outstanding (DPO) ratio. Another striking feature that C2FO brings to the fore is its ability to capture any change in the dynamic cost of working capital round the fiscal year and provide insights for attaining adequacy of reporting metrics and cash f low for a company.
To further substantiate the robust functionalities of C2FO, Stanton III cites a case study. A global consumer packaged goods (CPG) company had found its cash distribution in contrasting numbers across various international markets. While their business in Europe faced extending invoice payment terms to gain better short-term cash position, their Asian business was f lush with cash and earning little return. And repatriation from the cash-rich market to the cash-poor market would incur a substantial tax liability, thus reducing benefits in both regions. C2FO teamed up with the treasury and the procurement team of the CPG company and provided a four-part cross-regional working capital management strategy to help them gain greater financial stability and at the same time increase their profit margins. This CPG company’s supply chain also benefited from real-time access to cash f low through the offering.
Such success stories are a testimony to C2FO’s farsightedness in improving the working capital of a business. Today, C2FO has offices across North America, Europe, India, Australia, Singapore, and all of greater China, and caters to various industry verticals from retail to manufacturing, and oil and petroleum. “In the future, we wish to see C2FO as the primary funding source for businesses across the globe because of the seamless nature of how we connect businesses to deliver working improvement,” says Stanton III, on a concluding note.
Company
C2FO
Headquarters
Leawood, KS
Management
Stewart Stanton III, Managing Director
Description
C2FO is a simple and transparent technology available for businesses to access their receivables on-demand. Instead of waiting for payments, C2FO allows any business to request early payments from its customers in exchange for discounted invoices to convert their AR into immediate cash flow. By operating on this model, C2FO relieves the monetary and KPI pressures of companies by providing a debt-free working capital solution. It creates a closed knit transaction platform for suppliers, and customers, without the interference of any bank or other financial entity
The investment is designed to accelerate C2FO’s development of new markets to further improve access to working capital for companies globally not just large multinational corporations, but also small and medium-sized enterprises.
“We are very fortunate to have a team who, for years, has delivered industry-leading unit economics, extraordinary customer satisfaction, and strong global growth,” said Sandy Kemper, C2FO Founder and Chief Executive Officer. “Due to their work, we have now grown to match over $1.2 trillion of accounts receivable and accounts payable.”
C2FO’s online marketplace has quickly emerged as one of the most convenient and lowest-cost sources of working capital in the world. Utilizing proprietary algorithms, the company creates a seamless match between accounts receivable and accounts payable to dynamically price the value for early payment in real time. More than 300,000 businesses across 173 countries utilize C2FO to take control of their cash flow and receive more than $1 billion in funding every week.
“We invested in C2FO because we think their disruptive innovation offers a solution to an industry that has traditionally lacked cost-efficient alternatives for businesses of all sizes looking to free up cash quickly,” said Akshay Naheta, Managing Partner for SoftBank Investment Advisers. “We believe the company’s platform provides maximum value for buyers and suppliers and are excited by the company’s vision to become the global exchange for working capital.”
“This infusion of capital from the Vision Fund and existing investors will be used to further our expansion as we strive to build a new world wherein the increased liquidity provided by the C2FO platform helps companies and in turn, entire economies, grow more rapidly,” added Kemper.