Back to case studies
Back to case studies

Optimising the working capital of a pioneer automotive components supplier

Using Clear Invoice Discounting, our Supplier client was able to effectively manage their working capital requirement by taking early payments and thereby maintaining optimum inventory levels throughout to serve their large customer base.

Client Overview

Our Supplier client is one of India’s foremost manufacturers of MIG / Co2 welding wires, and is a primary supplier to large automotive groups, including Jay Bharat Maruti Group, Sandhar Technologies, and SKH Metals. The welding wires manufactured by them are primarily used by automobile component manufacturers to weld sheet metal components.

Key Challenges

Being one of the pioneer vendors in the industry, our client needed to maintain a large inventory at all times. However, maintaining sufficient inventory is a major challenge, as it requires working capital to be optimised in order to meet business needs.

Another challenge was to consistently maintain adequate working capital since the organisation had different credit period agreements with different clients. Thus, our client required a stable source of finance.

Our Solution

Our client opted for the Early Payment Program in order to ease the organisation’s liquidity problems, and thereby assist the optimisation of their working capital.

Regardless of the credit period, Clear Invoice Discounting provides the suppliers with an option to receive early payment on their invoices to manage working capital efficiently.

Tracking of invoices on Clear Invoice Discounting helps the supplier plan their future strategies based on the expected dates of the due amounts, even as the payments are approved by the respective buyers.

Our client’s team regularly tracked invoices on the platform, which enabled them to create better working capital strategies keeping the expected payment receivable dates of pending amounts in mind.

Results Achieved

The supplier is now able to manage their stakeholders, notwithstanding their different requirements and credit periods, by financing early payment through Clear.

After analysing market conditions and fluctuations in raw material costs, the client now opts to purchase their raw materials in bulk – financing this via early payment from Clear, thereby overcoming hitherto uncontrollable market challenges.

The Clear Invoice Discounting portal provides 24x7 visibility and tracking of invoices, which helps our client stay updated real-time to the processing and payment statuses of invoices.

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.
For more information on our solutions
Get in Touch