Tradeshift to Partner with C2FO, Extend Working Capital Access Across Network David Gustin and Xavier Olivera - June 30, 2015 10:21 AM | Categories: Technology & Platforms | Tags: breaking news, working capital Supplier collaboration platform Tradeshift announced Tuesday it would partner with C2FO to expand dynamic discounting solutions to a broader network of suppliers and buyers. The partnership will provide more suppliers access to the C2FO working capital market to improve cash flow and allow more buyers to increase pre-tax earnings through early payments. The partnership can be summarized as follows: Tradeshift, the company that views itself as the B2B equivalent of Force.com, now provides an app for working capital through C2FO, the only solution provider that enables buyers to set the APR return and accelerate cash to suppliers based on the rates set by latter. “We’re committed to continually extend value to businesses on Tradeshift through an open and collaborative app platform, and the partnership with C2FO speaks to that,” said Rinus Strydom, vice president of alliances and solutions consulting at Tradeshift. “This partnership provides Tradeshift’s ecosystem with the tools to optimize their working capital easier and faster than ever.” Tradeshift Value Proposition Finance outside of accounts payable never seemed to be a big focus of the Tradeshift value proposition and certainly not a big driver for the company. Even though Tradeshift began offering dynamic discounting – initially partnering with Taulia – it remained just that: a feature, a valuable one perhaps but a feature nonetheless. To date, Tradeshift has only a handful of clients that have implemented this feature. Certainly the company has differentiated itself in other ways, particularly its “build an app” strategy, or what the folks at Spend Matters call platform as a service (PaaS). The idea is that a suite can never scale past a certain point from a breadth and depth perspective. In a PaaS model, others can build applications and pre-integrated capabilities directly into a common platform, like Force.com with SalesForce.com. But back to the partnership with C2FO and the app that will become part of Tradeshift. C2FO – Not Dynamic Discounting What makes C2FO different from other dynamic discount plays? As opposed to dynamic discounting solutions that are offered by buyers, with C2FO, in theory, suppliers initiate a request for finance based on their marginal cost of borrowing. Speaking with Rinus Stryden, partner manager for Tradeshift, and Scott Loewen, Marketing, C2FO, the big difference with C2FO and Tradeshift’s dynamic discount offering is that Tradeshift has always worked on the premise the invoice has to come in via Tradeshift. With C2FO, Tradeshift will feed the entire set of accrued payables from clients’ ERP and have true marketplace on the approved payables. It’s clever on the surface. But how will the partnership work in practice? Check back on Spend Matters PRO tomorrow for a detailed look at the technology and financing architecture that will support the tactical plans for the partnership, as well as recommendations to organizations considering the use of Tradeshift and C2FO together. Related Articles Discuss this: Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of new posts by email.