ENTERPRISE CASE STUDY TESTIMONIAL

With C2FO's Help, Travis Perkins Is Building Up Its Network of Suppliers

21 April 2021
The C2FO Team

As the UK’s largest distributor of building materials, Travis Perkins equips customers with everything they need to fix up their homes — or even construct a massive new skyscraper. 

Travis Perkins can offer that level of service because of its network of more than 6,000 suppliers, which produce everything the company sells at its 2,000-plus locations. 

To ensure those partners have access to funding when they need it, Travis Perkins has partnered with C2FO, the world’s leader in working capital solutions. C2FO’s platform lets enterprise buyers like Travis Perkins and its suppliers agree on a customised discount in exchange for faster payment of invoices.

“The returns we can get from the discounts on offer from the suppliers are usually higher than the returns we can get simply by depositing our cash in the market,” said Graeme Barnes, director of capital markets at Travis Perkins. 

Meanwhile, thanks to early payment, suppliers can quickly access the funds they need to pay for operational expenses and grow their business, which benefits Travis Perkins, too. 

“If we want to grow our business,” Barnes said, “we equally need them to grow their business at the same time.”

Agreeing to an early payment is less expensive and less difficult for suppliers than borrowing money from a traditional lender. 

“Banking regulations have tightened up, and it's actually harder for those businesses to get money than it ever has been before,” said Matt McQuillan, C2FO’s UK managing director. “What C2FO does is in a very practical way allows big businesses to funnel that liquidity to their suppliers when they need it and at the levels they need.”

In its first six months using C2FO, Travis Perkins paid more than £40 million early. Invoices that once took two months or longer can now be settled in a few days.

Using C2FO has also changed the relationship between the company and its suppliers. They’re not just parties in a commercial exchange, but partners looking to help each other succeed.

More enterprises realise how much value is created by their supply chains. Some of the best innovations come from their suppliers. 

But to pay for those innovations, “suppliers need cash, they need liquidity,” said Colin Sharp, C2FO’s executive vice president, international. “They need working capital to allow them to fund those changes.” 

Offering early payment just makes sense, Barnes said. “If we didn't have a strong supply network, we wouldn't have a business with products to sell to our customers.”

Working Capital. Working for Everyone.

C2FO provides working capital solutions for you, your suppliers and your customers.

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