C2FO, who claims to be the world’s largest market for working capital, has reported its Q2 2015 working capital flows of $5.4BN, more than four times the rate compared to $1.2BN in Q2 2014. This record was fueled by a substantial increase in supplier early payment demand. Q2 2015 C2FO record milestones include: 

• generated $5.4BN in total working capital flows, the highest quarterly figures to date.
• recorded the first $2B+ working capital volume month in June 2015 
• provided 26.7M days of accelerated payment, the largest quarterly figures to date.

Since May 2010, C2FO has delivered more than $21BN in working capital flows and over 132 million days of accelerated payment, benefiting both buyers and suppliers across the globe. 

Global partnerships

C2FO and Tradeshift, a leading supplier collaboration platform, established a new partnership in Q2 2015 to catalyze the expansion of the C2FO working capital network of buyers and suppliers. 

Also in Q2 2015, C2FO completed a $40MM round of equity funding led by Temasek, a global investment company based in Singapore. Temasek joins a growing list of world-class C2FO investors including Union Square Ventures, Summerhill Venture Partners, OPENAIR Equity Partners, Mithril Capital, and Tiger Global. 

“Our recent funding round led by Temasek is a strong vote of confidence that C2FO has established the leading global business network for working capital,” said Sandy Kemper, C2FO Founder and Chief Executive Officer. “Temasek’s market knowledge and relationships in emerging markets will help C2FO capitalize on the international demand for more effective capital solutions and continue to accelerate our rapid pace of innovation,” added Kemper.

Support for small businesses in UK

C2FO spokesman believes that, “The government is absolutely right in recognizing that only the market can ultimately solve the huge issue of SME financing, and that legislation is helpful in enabling the market to achieve this goal.

The Small Business Minister’s announcement this week addresses the lifting of restrictions currently within procurement contracts that  effectively remove the ability to use invoice financing. This is a welcome step that frees up this part of the market by providing more flexibility and options for suppliers adopting invoice financing to raise funds.”

Not surprisingly, C2FO continue, “The government should also focus on viable solutions with the potential to inject much bigger quantities of cheap liquidity into SMEs. Early payment solutions delivered via Dynamic Discounting, where there is a true win-win available for both buyers and suppliers, is the type of elegant market solution that could make a big difference and without any change needed in existing regulation.”

Which is where the C2FO survey of suppliers using their system found that, “99.5% of suppliers saying that this was their easiest and cheapest source of cash” is particularly pertinent.

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CTMfile take: Small businesses need an easy to use and cheap source of cash. The demand for Dynamic Discounting can only grow world-wide.