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The supplier financing transformation of one of India’s foremost bearing manufacturers

Client Overview

Our client is a Mumbai, Maharashtra based Complete Friction Solutions provider, with a turnover of approximately ₹1000 Crores, operating eight manufacturing units in India and South East Asia where it produces Needle/Cylindrical/Tapered/ Roller Bearings, Ball Bearings, and Thrust Bearings, among other Anti-Friction Solutions.

Key Challenges

The Company faced a number of challenges that pushed it to make changes in its Supplier Financing Model. Here they are, as follows:

The first challenge was in the form of extremely low participation from its vendors.

Increasing the organisation’s returns on cash funds, and by extension, improving its EBITDA

Complete dearth of Financial Flexibility for their Suppliers

Our Solution

The organisation then decided to adopt Clearfin's Supplier Financing Platform.

To onboard its supplier onto a single platform so as to enable dynamic discounting powered cash Discounting/Invoice Discounting.

What We Did

Our dedicated Client Success Management Team ensured that Clearfin onboarded 254 Suppliers

This accounted for more than 71% of the total Vendors, a jump of more than 11 times* the number before.

This led to 14,688 Invoices being Discounted in the past 12 months, translating to over ₹150 Crores being discounted through Cash Discounting and Financial Institutions.

Towards the end, the company realised its goal of increasing its Returns on Cash Funds by achieving average returns of 12% p.a. on Surplus Funds.

Results Achieved

14,688 Invoices Discounted in the past 12 months

254 Suppliers Onboarded, covering

₹ 150 Crores transacted through the Platform

71% of the total Supplier Base

11.8% Savings Achieved

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.
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