C2FO: Creating Seamless Cash Flow

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.