Automotive Parts Manufacturer
This $300 million revenue auto parts manufacturer was facing customers demanding 270+ days payment terms while facing demand for payment from suppliers in 60 days. We stepped in and helped fund the company’s receivables in 30 days with accounts receivable finance and extended payables to 240 days with supply chain finance.
By using accounts receivable finance and supply chain finance with Raistone, the company was able to unlock $296 million from their balance sheet without incurring any incremental debt. With these funds, management had more options to grow their business, invest in capital expenditures, pay down debt, issue dividends to investors, make acquisitions, and much more.
There is substantial cash locked up in the balance sheets of aftermarket suppliers. At Raistone, we are a leader in this space and can help ease pain by freeing up working capital with flexibility.
The working capital benefit
$296 million in cash unlocked using accounts receivable finance and supply chain finance.
DSO decreased from 270 days to 30 days with accounts receivable finance.
DPO extended from 60 days to 240 days with supply chain finance.