Frequently Asked Questions
We enjoy taking the time to get in touch and have an active exchange with our customers and market participants. Your feedback, questions, and requests help us improve our platform and offerings. Please contact us at any time. In addition, or to begin with, you can find answers to our frequently asked questions here.
How does market-based discounting work?
Purchasing companies and their suppliers use cflox for market-based pricing for Working Capital. In the first step, the buyer sets a payout volume that he is willing to pay out early to participating suppliers. Suppliers can set their individual bids – dynamically on a per-invoice level. After the event clearing, the payout volume is distributed among the most attractive bids.
What are the benefits of a direct market for Working Capital?
Through cflox, purchasing companies and suppliers work together to optimize their cash flow and create win-win benefits: Buying companies realize risk-free returns while suppliers improve their liquidity and reduce their financing costs. Market participants can bypass banks and financial intermediaries, eliminating risk and avoiding complexity as well as high costs.
How can I invite my customers and suppliers to cflox?
In order to expand your network, we support the targeted approach of customers and/or suppliers. Contact our account management team to identify cflox participants in your supply chain, work together to find partners of your choice, and strengthen your network (netzwerk@cflox.com).
Why do suppliers use cflox?
Suppliers use cflox for three main reasons:
- On cflox, you determine when your invoices are paid. As a result, you control your cash flow and selectively strengthen your liquidity.
- You reduce your financing costs with cflox: You can replace factoring, reduce utilization of your lines of credit, or replace other expensive credit instruments.
- You can connect with your key clients through cflox, enabling you to manage your cash inflow and optimize your key balance sheet metrics such as liquidity, Working Capital, and leverage.
Is it possible to combine cflox with factoring?
Using the cflox platform, suppliers receive early payment of their invoices directly from their customers. For many companies, the market price on cflox is not only cheaper, but also more transparent than factoring. Most of the time, the use of cflox is possible in combination with an existing factoring contract. We recommend you check your possibilities based on your individual contract. Our experts are happy to help: Contact support@cflox.com, and we will get back to you as soon as possible.
What is Supply Chain Finance?
Supply Chain Finance, also referred to as trade finance, is the pre-financing of trade payables by a bank or other financial service providers. With cflox, we empower buyers to extend their payment terms, while, at the same time, their suppliers receive early payments of their invoices. This way cflox supports both buyers and suppliers in strengthening their financing and liquidity.
How does cflox Supply Chain Finance work?
On the basis of the payment terms between buyers and suppliers, cflox offers the early payout of receivables confirmed by the customer (financing through the purchase of receivables). Buyers and supplier benefit from flexibility, simplicity, and favorable financing costs based on the creditworthiness of the strongest participants in the supply chain.
What are the advantages for me as a buying company?
A sample of benefits for buyers:
- You improve your Working Capital with a continuous and sustainable effect.
- You strengthen your strategic suppliers in your supply chain.
- You harmonize your payment terms, driven by the financial department and supported by a structured and transparent process for procurement and suppliers.
- You can dynamically use your own excess liquidity to realize additional discounts.
What are the advantages for me as a supplier?
A sample of benefits for suppliers:
- You get full transparency regarding your confirmed and outstanding invoices.
- You get immediate access to liquidity at low financing cost.
- You strengthen your Working Capital and balance sheet ratios - and thus your credit rating.
How long does it take to implement cflox Supply Chain Finance?
The system connection of the cflox market has been developed as a lean solution that only takes a few days to configure. We have fully developed system interfaces to most ERP systems in the market. Suppliers receive direct access to the cflox platform and can immediately participate in the program.
How long does the onboarding process take for me as a supplier?
Suppliers receive direct access to the cflox market and can immediately participate in the program. On the platform, they can review and manage the underlying contractual agreement for invoice financing.
Do I have to change my invoices as a supplier?
No. The existing procurement and invoicing processes between you and your customer do not change.
How can I access the cflox platform?
You can access our platform worldwide using standard modern browsers. With your personal access username and password, you log into your account – just like online banking.
Is it possible to use multiple cflox solutions simultaneously?
The cflox platform enables market-based discounting and supply chain finance to be used for different supplier groups or depending on the situation, as required.
In which countries can the cflox platform be used?
The cflox platform can be used globally and transnationally. Customers and suppliers from over 25 countries are currently registered and active.
Which currencies are available on the cflox platform?
We connect customers and suppliers globally. Therefore, most currencies are available on the markets. Please contact us to request a detailed list of available currencies.
How complex is the interface to the ERP system?
cflox has developed its own set of interfaces for the most common ERP systems. They can easily be installed and adapted to your own accounting rules and specifications without any changes to your ERP customizing.
How safe is cflox?
The cflox platform is based on state-of-the-art technology and the latest security standards including encrypted data transfer and hosting at a certified data center in Hamburg, Germany.
We’re glad to help you in person in case your question remained unanswered. Feel free to send us an email.
