Strengthening global supply chains
How an enterprise-leading fastener manufacturer optimized working capital and supplier engagement
For a global fastener manufacturer, managing complex supplier networks across multiple regions was creating friction in payments and slowing growth. The company wanted to standardize payment terms while also giving suppliers more control over cash flow.
To achieve this, the company partnered with eCapital and Citizens Bank to implement a tailored supply chain finance solution that improved liquidity and strengthened supplier relationships.
THE CHALLENGE
The company faced challenges common to global manufacturers. Payment terms varied widely across suppliers, creating uncertainty and inefficiencies. Delays in payment caused frustration for key vendors, while holding onto cash longer strained internal liquidity.
“I was concerned suppliers might push back on longer payment terms, or that our liquidity would be constrained,” said Finance Director, Fastener Manufacturer. “We needed a solution that would support both our cash flow goals and our suppliers’ needs.”
Our collaboration with eCapital has been instrumental in transforming our vendor relations and strengthening our financial position.”
Finance Director, Fastener Manufacturer
THE SOLUTION
eCapital partnered with Citizens Bank to implement a $10 million supply chain finance facility, enabling early payments for suppliers at competitive rates. The program included a modern, easy-to-use digital platform for managing liquidity and supplier information, allowing suppliers to access same-day funding on approved invoices.
THE RESULTS
Through this partnership, the fastener manufacturer standardized payment terms at 120 days while simultaneously offering suppliers early access to funds. At the outset of the program, nearly $6 million in working capital was unlocked, giving the company greater financial flexibility. Suppliers appreciated the reliability and transparency, improving engagement and reducing disputes.
Explore the solution that helped this manufacturing company optimize working capital
Supply Chain Financing
Flexible financing solutions to help businesses improve cash flow, and unlock capital for growth.
