RAMACO RESOURCES

Tailored financing solution

How eCapital helped Ramaco Resources with their cash forecasting and quick invoice payments.

Ramaco Resources

For Ramaco Resources, a Lexington, Kentucky-based metallurgical coal company, selling to a large customer on end-of-accounting-period (EOAP) terms created serious challenges in managing cash flow and forecasting. In some cases, the days sales outstanding (DSO) could stretch to 75 days.

The uncertainty was making it difficult to plan effectively—until Ramaco joined a supply chain finance program powered by LSQ FastTrack® (now eCapital FastTrack®).

THE CHALLENGE

With EOAP payment terms, Ramaco often had to wait months to receive payment for shipments, making cash management unpredictable. “Trying to figure out what’s going to post two months from now on the 15th is a challenge,” said Trish Claunch, Manager of Treasury Services.

This delay in accounts receivable was disrupting financial planning and limiting the company’s ability to allocate resources efficiently. Ramaco needed a solution to improve working capital without waiting for lengthy terms to play out.

THE SOLUTION

In October 2020, Ramaco enrolled in eCapital FastTrack®, a supply chain finance solution used by their buyer to offer early payments to suppliers. The shift was immediate—DSO dropped from as high as 75 days to just 4–5 days after shipment.

The new timeline allowed Claunch to confidently plan when payments would arrive and make smarter cash flow decisions. “It really helps me… to know exactly when that cash is going to come in,” she said.

THE STORY

Unlike other SCF programs Ramaco had used, LSQ (now eCapital) gave them the flexibility to choose which invoices to accelerate, rather than applying a one-size-fits-all model. This selectivity, paired with fast onboarding and responsive customer service, created a smooth and efficient experience.

“The team at LSQ (eCapital) was quick to respond and incredibly helpful during onboarding,” Claunch added. With the visibility, flexibility, and certainty eCapital provides, Ramaco can now manage its working capital with confidence and precision—turning a former cash flow challenge into a strategic advantage.

“It’s been a very smooth process working with them”

Explore the solutions that helped with cash flow challenges for Ramaco Resources

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