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Increasing the returns on cash funds by 15.7% for a major diagnostics brand

By leveraging Clear Invoice Discounting, our client was able to fully-digitise their cash discounting process. This helped them provide timely payments to their suppliers, which resulted in forging stronger ties all round.

Client Overview

Our client is a popular diagnostic lab chain in India offering diagnostic tests and other associated healthcare services via 3,000-plus employees in 200-plus locations across the country. Powered by their stellar performance, they have become one of the biggest brands in pathology, laboratory, and diagnostic services in the country and beyond.

Key Challenges

Over the years, the company faced numerous inefficiencies with most of their Supply Chain partners, including:

Use of Traditional Cash Discounting: Only some of their vendors asked for their bills to be discounted. These too, were sporadic requests at best.

Lack of one common digital platform: Requests were made on phone calls and emails, and did not take off as expected, due to low vendor participation.

Our Solution

Clear Invoice Discounting provides a technology-enabled platform that integrates with their ERP, providing unprecedented visibility to vendors across the country.

After a quick and easy onboarding onto our Invoice Discounting platform, we collaborated with their teams to help streamline their suppliers’ financial operations.

Each and every request for Early Payment submitted by the vendors and accepted by our client were automatically sync'd with the client's ERP. This enabled accurate reflection of the discount earned and also showed the new payment date, mutually agreed between the two parties.

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

Greater participation by the Suppliers
The client onboarded 193 Suppliers, who have since then discounted more than 7,634 Invoices worth over ₹ 107.25 Crores via the platform.

Improved Liquidity for the Suppliers
Suppliers are now able to readily access quick funds, as and when they wish for more liquidity.

Unprecedented Increase in EBITDA
Based on all the above initiatives, our client was successful in increasing their Return on Surplus Funds to over 15.66% p.a.

Clear 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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