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Healthcare company receives a dose of financial health boost by leveraging supply chain finance

Access to working capital is essential for enterprises and their vendors’ ecosystem, especially during economic turmoil. With Clearfin, one of the Clients in the healthcare domain has been able to improve its Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA), and support its vendors with a digital platform to leverage invoice discounting options

Client Overview

The Client is an international service provider of diagnostic and related healthcare tests and a market leader offering a broad range of accessible, affordable, timely, and quality healthcare diagnostics. It is the most trusted healthcare service provider in the country.

During the Covid-19 situation, Client stood true to its reputation and upped the ante on extending the support to its vendor ecosystem.

Key Challenges

Traditional Cash Discounting
A handful of our Client’s vendors used to ask for discounting of their invoices through email or phone. But the conversion was very minimal as the vendor participation ratio was less, and it was a time-consuming process.

No Platform for Invoice Checking
Vendors did not have a digital platform where they could log in and have access to their outstanding invoices with all the details 24*7.

Diminishing returns on Surplus Funds
With the falling interest rates in the market, treasury income from surplus funds kept on reducing.

Our Solution

Clearfin provided a technology platform integrated with the Client's ERP system so that invoices received across the country and accepted on Client ERP are now also visible on the Clearfin platform to respective vendors. Clearfin technology platform is used for their tracking.

And, all early payment requests digitally submitted by vendors on Clearfin platform and accepted by the Client are also updated in ERP automatically by Clearfin to reflect the Cash Discount earned & the new payment date mutually agreed by both Client and Vendor.

Tech Approach

Regardless of the credit period, Clearfin now provides the supplier with an option to receive early payment on Invoices to manage working capital efficiently

Tracking of invoices on Clearfin platform helps the supplier make future strategies based on amounts expected with due dates as approved with its respective Buyers.

Results Achieved

After the partnership with Clearfin, Vendors find it very convenient to log into the Clearfin platform and ask for early payments by discounting their invoices through a digital platform. This has helped them tide over the difficult Covid era as well as tap new business opportunities in the market.

Clearfin Platform for Invoice Tracking
Vendors now have an online platform where they can check their invoices due for payment with all the details. Vendors are notified of Invoice details on a daily basis and submission of requests via email and SMS.

Increase in EBITDA
By leveraging the Clearfin technology platform, Client could achieve additional cash discounts across a wider vendor base which led to a reduction in raw material costs and hence, an increase in Operating Profit.

In short, it turned out to be a win-win situation for everyone, where Supply Chain financing keeps the ball rolling for the entire ecosystem with a technology platform from Clearfin.

Clearfin understands supply chain finance nuances. Through our algorithm-based auction and dynamic discounting solutions, we bring efficiencies for the enterprise clients working capital management.
For more information on our solutions
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