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Increasing the velocity of cash for an industrial chemicals supplier in India

With Clear Invoice Discounting, our client quickly overcame cash flow mismatches and managed to increase the velocity of cash to drastically improve their performance and efficiency.

Client Overview

Our Supplier client is a popular importer and distributor of industrial chemicals in India, and is primarily engaged in stocking, indenting, and distribution of a wide range of chemicals. The company is one of the largest suppliers of specialty chemicals for various industries, such as polyurethane, petrochemicals, paints and coatings, personal care, construction, etc.

Key Challenges

Our client has a distribution agreement with 10 global corporations to supply an assortment of products that would be further reconditioned at the plant before it is supplied to its clients.

While the company has a credit period of about 60 days from its buyers, it needs to make payment to its suppliers within 30-40 days.

Our Solution

The supplier client has been able to overcome their cash-flow mismatch by using the Clear Invoice Discounting platform:

The client, who began sending early payment requests via the platform, is now receiving payments from their buyers within 7 to 10 days of the invoice, rather than waiting up to 60 days.

The ability to track the processing and payment status of their invoices 24x7 via Clear Invoice Discounting helps our client plan their future strategies, based on real-time visibility to the expected payments from the respective buyers.

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

The client substantially increased their velocity of cash, thereby ‘unlocking’ the ‘trapped cash’, which resulted in major improvements in operations, leading to better growth.

The client was able to strengthen their relationships with partners across the supply chain.

As a result of their ability to make timely payments with the help of the Clear platform, the supplier client also strengthened their relationships with their international partners.

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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