Retail

Securing discounts and liquidity

For companies in the retail sector, striking a balance between discounts and ensuring liquidity is crucial. This is precisely where cflox's solutions for early supplier payments and additional payment terms come into play.

Challenge

Discounts + long payment terms

For companies in the retail sector, the balance between cash discounts (or purchasing costs) on one side and positioning and liquidity creation through additional payment terms on the other is crucial.

Buyers in retail can often benefit from discount agreements with their suppliers. A 2% price reduction for early payment is an advantage that one cannot simply forgo. At the same time, high internal inventory levels and fundamentally locked-in liquidity due to utilizing additional payment terms are essential for their own cash flow. This fundamental conflict forces a compromise, where either earnings or liquidity suffer along the way.

Additionally, unforeseen supply chain and demand fluctuations require highly flexible Working Capital Management. Every dollar, not tied up, serves as a strategic buffer to react to bottlenecks or to secure targeted inventory, thereby ensuring your own delivery capability.

Solution

Optimizing Cash Discounts and Cash Flow Simultaneously

cflox resolves the classic conflict of objectives in retail. You no longer have to choose. Realize valuable cash discounts without tying up your own liquidity early by paying your suppliers early using the cflox earlypay solution, thereby benefiting from the discount. Simultaneously, you gain an additional payment term with our cflox pay solution.

Early supplier payments with cflox earlypay

Additional payment terms with cflox pay

This newfound flexibility offers you the best possible margins and earnings, while simultaneously giving you full control over your working capital. Especially in times of supply chain uncertainty, you can create the necessary liquidity buffer to react to fluctuations, secure inventory availability, and build a more resilient business.

cflox earlypay

Early Supplier Payments

Strong supply chains through early supplier payments. The simplest way to activate suppliers without KYC.

cflox earlypay

cflox pay

Additional Payment Terms

Working capital financing through 60 days of additional payment terms. Simple, efficient, and independent of suppliers.

cflox pay