Supply Chain Finance helps a global engineering firm
How Raistone helped a client unlock $10MM in 6 months
The Challenge: A global engineering firm was struggling to support their large customers, who expected 90+ day payment terms, while their suppliers were demanding payment in 30 days or less. Put simply, they needed to find a way to balance customer AR terms with supplier AP terms to improve their cash conversion.
The Solution: In collaboration with Raistone, the client enabled suppliers to get paid faster on their receivables with Supply Chain Finance (SCF). Raistone’s flexible solution, and simple invoice upload features, enabled the client to go-live in weeks — not months — without a costly technical implementation project.
The Result: Our client saw a $10 million increase in available cash flow in the first 6 months, with more than $8 million of the cash flow benefit realized in the first 3 months. SCF enabled them to secure longer payment terms with their top suppliers. As a scalable solution, SCF strengthened their whole supply chain ecosystem – ranging from tail-spend to top suppliers. In addition, the client continues to benefit from strengthened supplier relationships and the ability to facilitate more new business sales, by having more liquidity, without taking on debt.
~$100MM company was seeking a SCF provider that specializes in funding and rapidly deploying programs for mid-market buyers.
$10MM facility provided by Raistone to support strategic suppliers and deliver required DPO benefits.
<1 month to launch to quickly deliver benefits so business case objectives could be met.
$8MM of cash freed within the first 3 months, thanks to Raistone rapid implementation and onboarding model.