C2FO developed an online marketplace that enables suppliers and big buyers to negotiate better payments terms in a live bid/ask environment. For those who are not familiar with what a working capital market is, in C2FO’s case, suppliers provide a rate at which they will discount their invoice for early payment. This is a significant point of distinction. Suppliers have the ability to set their own price for early payment. Small businesses that need access to capital faster use C2FO when they need to fuel their supply chain growth, instead of pursuing traditional financing.
C2FO clients include Costco, Walgreens, Sysco, Toys“R”Us and Toshiba, and it has recently expanded into key verticals including healthcare, manufacturing and technology. Using the online marketplace, these large companies can use C2FO as a liquidity management tool for treasury, designating the amount of cash they have available for early payments and what amount of discount or return they’d need to accelerate an invoice. Their suppliers will then bid for a share of that money depending on their own cash flow and cash management needs (this is the unique “supplier-pull” model of C2FO). This enables corporate treasurers to achieve operating cash at yields far above short term investment products.
C2FO has delivered more than $15 billion in working capital and 80 million days of accelerated payment to businesses worldwide.