5 Ways That Entrepreneurs Use C2FO to Grow Their Businesses
25 January 2023 |
The C2FO Team
Getting paid faster can open the door to more rapid growth, bigger orders and more.
It takes money to make money, and that’s why so many small businesses find it difficult to tackle new opportunities when they arise. They don’t always have the funds to ramp up production or service a huge new client.
C2FO was created to solve this problem by putting working capital into business owners’ hands as quickly and conveniently as possible. Payment can be received on the next immediate payment run, which can be in as little as two days.
Even better, it can be done without any hidden fees, without any long-term contracts, without any of the other frustrations that make companies avoid traditional lenders, factors and other providers.
See what it looks like in action. Here are five ways that real businesses are using C2FO to keep growing.
Compete for more business opportunities
MES, an Italian civil and industrial engineering firm, has earned a sterling international reputation for its work on extremely large and complex construction projects, such as ships, hotels and hospitals.
Unfortunately, these projects typically consume large amounts of time, too, and owner Massimo Esposito had trouble invoicing clients in advance. As a result, he sometimes lacked the operational funding to tackle new projects and grow his business.
Then a client told Esposito about C2FO, which lets MES get paid within days in exchange for a small discount. Even better, C2FO doesn’t have the time-consuming documentation requirements that many factors and banks insist on.
“The process is very simple. With two quick clicks on the platform, I can launch a request for payment and have an answer within a day,” Esposito said.
Now that MES has almost on-demand access to capital, Esposito has expanded his team from four people to roughly 160 now, allowing him to pursue even more projects.
“A whole new world opened up,” he said.
Funding new growth and expansion
UK-based ADXBA — provider of digital video displays used in stadiums, airports and other venues — has rapidly scaled its business even as travel and entertainment struggled during the toughest parts of the COVID-19 pandemic.
With C2FO’s early payment solution, ADXBA was able to secure the funding it needed to pay for operational costs (like the purchase of hundreds of monitors) even as it made investments in a string of other initiatives, such as entering new markets, and opening a new assembly and production facility.
Even better, using C2FO is faster and less burdensome than working with other partners.
“We can draw down on approved invoices within days and with no ongoing contractual requirement,” said Jim Kerr, ADXBA’s managing director.
Invest in more inventory without relying on a bank
Exceptional Trading B.V. is the leader in private-label lighters for Belgium and the Netherlands, supplying supermarkets and other retailers in each country. Until recently, though, owner Sheila Keijzers had a major problem with inventory.
“We have to finance our stock far in advance,” Keijzers said. ”Sometimes up to six months in advance. Before we were introduced to C2FO, we were dependent on our supplier in Hamburg and on the bank.”
Today, Exceptional Trading can almost instantly increase its cash flow with C2FO’s early payment. The company’s customer will pay its outstanding invoices within days in exchange for a discount negotiated via C2FO’s platform.
As a result, Keijzers and her team have more control and more options when ordering inventory.
“It all works so easily and perfectly that you don’t have to worry about it,” she said. “As an entrepreneur, that is great because you’ve already got enough to do.”
Increase bargaining power when purchasing inventory
C Ajans, a Turkish company specialising in outdoor advertising, says C2FO’s early payment not only has accelerated payments but also has given C Ajans more power when buying inventory. Because it has more money on hand, it can command better pricing.
“We increased our bargaining power with our own money,” manager Salih Akaner said.
Using C2FO has another benefit for C Ajans. When the company needs working capital as soon as possible, it doesn’t have to deal with banks that charge high fees for providing that kind of help.
“When we discovered the C2FO programme, we realised we could actually gain an advantage by quickly incorporating our receivables into the system,” Akaner said. “We decided that capitalising on this advantage would be a valuable strategy for our company.”
Protect margins and improve the cash conversion cycle
Chi-Enterprise, a German company that sells more than 1,000 food supplements, massage devices and other health products for personal use, was facing up to 90 days to receive payment whilst needing to pay nine months in advance for stock and delivery.
Today, the company uses C2FO to request early payment in exchange for a small discount.
“We can receive the money that we are owed earlier in exchange for interest, which enables me to improve my liquidity, which is honestly the be-all and end-all in a business like this,” owner Christopher Schneider said.
By increasing Chi-Enterprise’s cash flow, the company has the ability to fight margin compression by buying on more advantageous terms and shrinking its cash conversion cycle.
The bottom line
Making working capital more accessible to small businesses allows them to take the next step in their evolution, whether that’s funding new and rapid growth, tackling bigger orders or reducing costs by qualifying for discounts.
C2FO is uniquely positioned to help companies get that funding — without hidden fees, without long-term contracts, without requiring collateral or an egregious amount of paperwork. Learn how our on-demand platform can help your business get paid faster.