Leading Logistics Company Uses C2FO to Build Cash Flow and Improve Metrics

Over the past five years, a major logistics provider has used early payment from C2FO to strengthen its balance sheet and accelerate more than $782 million in receivables.

The challenge

In December 2016, a major logistics company with more than $7 billion in annual revenue was seeking a way to strengthen its balance sheet, build cash flow and improve financial metrics during key reporting periods. The company was well capitalised, however management was looking for a capital solution that did not require leveraging or securitising its assets.

The solution

With C2FO’s integration to HP and Amazon, the logistics company was eligible for our early payment platform. As invoices were approved, they immediately became available for advancement into the company’s existing bank remittance. Management preferred this as capital was available without being rerouted to a lender or a third-party lockbox account.  The timing of cash flow through early payment is especially vital for transportation companies, which need to keep capital moving to support payroll, fuel costs and vendor expenses. 

When considering C2FO, management for the logistics company liked that they could select which invoices to accelerate from their customer, HP, at times that were optimal to pull in more capital. On the company’s first day using early payment on the C2FO platform, it accelerated more than $7 million in invoices.

The results 

Since first participating in early payment in 2016, the logistics company has accelerated more than $782 million in receivables on the C2FO platform from HP, Amazon, as well as customers that ship beverages, autos, electronics and heavy equipment. The amount of working capital the company has generated through C2FO has increased each year. At the same time, the logistics provider has achieved Fortune 500 status and surpassed $15 billion in annual sales.