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Tech Data has extended its relationship with C2FO to ensure it can settle its bills with vendors quickly to ensure it triggers the benefits of being a prompt payer.
The two firms have been working together since 2014 but have now inked a five year extension that gives the distributor the chance to speed up payments of approved invoices by working with C2FO, which offers a 'marketplace for working capital’, that enables suppliers to bid to receive payment for their approved invoices early in return for a discount.
“We have extended our partnership with C2FO because of the value they provide to us and our supply chain, but also because of their team approach,” said David Childers, vice president, assistant treasurer at Tech Data.
“We value the relationships that we have with our vendors and the C2FO collaborative approach represents another way for us to enable our supply chain success," he added.
Most vendors reward those that settle invoices quickly and the plan is for the distributor to use the relationship with C2FO to extend that approach with more vendors across Europe.
“The Tech Data commitment to our long-term partnership is very gratifying,” said Sanjay Gupta, COO of C2FO. “We help businesses improve supply chain health."
Research from the C2FO last year highlighted that for many SMEs cash flow is one of the biggest headaches across Europe. The problems include not only getting access to credit but for many the cost of borrowing had been too high.
The research also highlighted the importance of being in a position to settle invoices quickly, with it being a factor for customers deciding who do work with. Three quarters of those that responded said it was important that customers offered "supplier friendly accelerated payment options".
Tech Data is itself a major credit provider making sure that resellers can get access to funds to unlock customer purchases.