A new partnership is looking to unleash trillions of dollars in working capital for use by suppliers in today’s global supply chain. Reports on Tuesday (June 30) said supplier collaboration platform Tradeshift has revealed a new partnership with working capital and dynamic discounting service provider C2FO. Together, the companies will look to bring more suppliers to sources of financing to better manage their cash flow.
The collaboration will bring Tradeshift’s suppliers into view of C2FO’s services, and make it easier for corporate buyers to settle their invoices early, reports said. According to the companies, both Tradeshift and C2FO agree that in today’s market, it is crucial that corporate buyers strengthen their financial stability with suppliers.
"C2FO exists to provide much-needed working capital to suppliers, at a rate cheaper than any other source of capital,” said C2FO Chief Product Officer Kevin Daniels. Daniels added that in the last five years alone, the company’s platform facilitated more than $15 billion in working capital to corporations. The firm also yielded 100 million days of accelerated payment in that period.
Last April, C2FO revealed that it would soon be processing $1 billion worth of invoices every week, a figure that demonstrates the company’s recent growth in alternative finance to corporate suppliers.
Tradeshift’s platform will now include the C2FO app, allowing business users to access financing and other collaborative tools between the companies. Buyers on the Tradeshift platform will also be able to synchronize their procurement with C2FO suppliers, a connection the firms said would lead to earlier payments.
Analysts agree that partnerships between servicers of both buyers and suppliers make for stronger cash flow management in the supply chain. “Collaborative marketplaces that enable faster invoice processing and higher supplier participation can significantly simplify the process of dynamic discounting and help companies drive real working capital improvements,” said Hackett Group Senior Manager Derrick Steiner.