C2FO (Collaborative Cash Flow Optimization) is the only working capital exchange that allows companies to optimize their working capital positions in a live, bid/ask environment, see. Companies across the globe use C2FO to increase their operating income while simultaneously producing vital working capital flows to their supply chain.

Bidding process

The bidding process in C2FO is unique and is much more than an auction, it works as follows:

1. buyer makes approved invoices available for early payment in C2FO and sets a target APR plus the minimum hurdle rate, and the amount of cash that can be used for early payment 
2. suppliers input a starting offer and a maximum offer. These are stated as either an invoice discount percentage or a per annum percentage
3. supplier either activate the automated bidding engine or opt to manage manually.  (The vast majority uses the automated engine)
4. while the market is open, C2FO's proprietary algorithms calculate the find the most efficient capital across all of a supplier's customers and "award" an early payment based on an offer that meets both the suppler's and the buyer's criteria.  

There are several other easy to use features for suppliers including: Put in a cash order for a certain dollar amount, Schedule market bidding, etc. This simplicity masks the complexity of the backend algorithms 

As Jordan Novak, MD of Business Development, at C2FO explained, “Our mission is to liberate working capital in this way.”

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CTMfile take: The objective in the liberation of working capital in the supply chain is to optimise the allocation of the spare cash to the most needy participants in each supply chain which is what C2FO is all about.