Working capital marketplace C2FO revealed earlier this year that it is on track to process about $1 billion worth of invoices every week as businesses increase their demand for invoice financing. On Tuesday (Aug. 11), reports revealed new support to help C2FO achieve that goal.
The working capital marketplace secured $40 million in financing from Temasek Holdings and other backers, according to reports. C2FO works with corporate buyers like Amazon and Costco to take advantage of supplier discounts by paying them in advance for the supplies they need. Suppliers then get paid earlier than they normally would have.
It’s a business model that seems to be working. Last April, C2FO was said to be already processing about $1 billion of invoices every quarter and will soon be processing that volume on a weekly basis. The company not only works with major corporations but also with government suppliers.
In a recent interview with PYMNTS, C2FO Chief Product Officer Kevin Daniels said that the company uses algorithms to identify the best APR for each supplier to gets them paid faster while buyers access the highest-possible discount.
“This in effect lets each business in the marketplace name their discrete price for cash and cash flow,” Daniels said, “thereby creating the most fair way to price cash and cash flow.”
Last month, the company revealed a new partnership with supplier collaboration platform Tradeshift, a venture that aims to connect more suppliers with C2FO’s financing services. Their collaboration brought the C2FO app to the Tradeshift platform, providing a one-click way for suppliers using Tradeshift to find the working capital they need.
The $40 million in financing follows the release of C2FO’s quarterly earnings report, which yielded $5.4 billion in working capital flows, its highest such figure to date, the company said.
“Our record growth in the past quarter for existing and new global customers generated a 334 percent increase in working capital flows,” said C2FO Senior Vice President and Chief Financial Officer John Kill in a statement.