C2FO–Prioritising competitive source of liquidity


C2FO is the largest early payment platform in the world. We are constantly innovating to improve the service we provide for our customers and remain the most competitive source of liquidity for each of the suppliers using the platform, said Pradeep Gode, General Manager – India at C2FO, in conversation with Elets News Network (ENN).

  1. Give us an overview of your products and services in India.
Pradeep Gode, General Manager – India at C2FO

C2FO is India’s most efficient and effortless early payment platform with the largest return for corporates and the best rate for their suppliers. Multinationals and leading Indian corporations with supply chains across the globe use C2FO to increase their operating income while simultaneously producing vital working capital flows to their supply chains.C2FO is a leader in retail, industrial, manufacturing, CPG, energy, healthcare, technology, telecom, and transportation sectors. C2FO is Collaborative Cash Flow Optimisation.

U.S. based financial discounting platform, C2FO sets its foot in India in 2016 to help optimize working capital liquidity. CEO Sandy Kemper founded C2FO in 2008. The major problem that was being targeted was restricted cash flow, which in turn was leading to an inadequate growth of businesses and attracting financial risks. C2FO helps small and medium-sized businesses in India access cash, which they put to work in ways that directly and positively contribute to the economy.

  1. Tell us about your ‘Early Payment’ scheme. How does it help the customers in streamlining their payments?

The Buyer uploads approved invoices scheduled for payment. Their Suppliers, who issued these invoices to the Buyer, gain a transparent view of their own Accounts Receivable via C2FO and then accelerate their AR by offering a small discount to their own Buyers. The choice to use C2FO is completely with each Supplier. Moreover, the rate of discount Suppliers wish to offer is also voluntary based on their unique business, margins, cash position and alternate funding avenues. Variable discount rates are many times lower than their current cost of capital.

This method of early payment helps the Suppliers to expand their businesses, take up more orders, or clear their existing working capital lines. Invoice processing between Buyers and Suppliers does not change with C2FO. The only things that change are the payment date and the invoice amount. The Buyer’s ERP is automatically updated when invoices are awarded for early payment. Buyers still pay their Suppliers directly with the same process, only faster.

  1. How do you help maximising risk-free returns for your customers?

C2FO offers our clients (Buyers) an immediate ROI on their existing invoices. When Suppliers are in need of an early payment(s), they extend the discount on the existing invoice(s) offered. With this process, our clients (Buyers) pay less than the original amount on the invoice, in return for an accelerated payment.

Buyers have limited avenues elsewhere to generate risk-free return on their free cash flow. By using C2FO, these customers are able to double the return on this cash by simply investing into their Suppliers using a true marketplace approach that provides transparent price discovery for the value of accelerated payments. Since the return is being captured as a cash discount on goods/services that have already been procured, the return is completely risk-free.

  1. Majority of India resides in rural-region where Financial Inclusion is still under process. Do you face any challenges in this regard?

C2FO is a B2B offering, and as such, targeting Suppliers of large corporates. Often, these Buyers and Suppliers are in the rural regions of India. C2FO is a simple application that requires very little technical understanding. Moreover, our online registration process needs no paperwork, thus removing any barriers to speedy adoption. C2FO’s dedicated Supplier Relationship Managers hand hold Suppliers across the country and ensure each Supplier has a truly world-class user experience. This is an important element of the value proposition. C2FO’s Supplier Relationship team has deep language abilities to communicate across the diversity of India. C2FO has also innovated using various technologies (such as email, phone, iOS apps and Android apps) to support our outreach to customers across the globe.

  1. What new technological innovations are you implementing to bring convenience to your customers?

C2FO is the largest early payment platform in the world. We are constantly innovating to improve the service we provide for our customers and remain the most competitive source of liquidity for each of the suppliers using the platform. Some of the areas we continue to invest are:

  • Data privacy/Compliance
  • End user experience across the browser, iOS app and Android app
  • Improved supplier experience by using new communication channels like WhatsApp and SMS
  • Bringing more Buyers on the platform so the network becomes more valuable to each of the Suppliers using C2FO

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