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C2FO Powers Early Payment Programs for the World’s Largest Companies.
Discover expert insights on working capital, cash flow optimisation, supply chain management and more.
We believe all businesses can and should have equitable access to low-cost, convenient capital to grow and thrive.
The company has strengthened its finances with C2FO and increased its credibility in the market.
Fiber-reinforced plastics (FRP) as an industry is gradually gaining ground due to increased awareness about its exclusive properties such as corrosion- and heat-resistance, high strength, light weight, and ease of installation. These qualities make FRP products stand out from their substitutes.
However, the processes involved in manufacturing these products are layered and complex. The desired outcome depends heavily on process knowledge and manufacturing precision. Product quality is always under the scanner, and any failure with the quality tests often results in production losses and rejections.
Nevertheless, Intec FRP Products (IFP) has made its way into the challenging FRP industry by embracing all the risks and positioning itself as a reliable partner for its clients.
Dipak Pandya has been in the field of fiberglass since 1984. For nearly four decades, Pandya has been actively involved with research and production of a variety of materials, such as insulating material, fiber mesh and fiber sheets. Pandya traveled extensively both nationally and internationally and researched:
After garnering his domain expertise in the FRP market, Dipak Pandya started Intec FRP Products in 2006 at Ahmedabad. He was certain that IFP would cut across the already thin competition and stand out in the market because the company adhered to international standards and best manufacturing practices.
“We are a performance-driven organization committed to global leadership and the production of high-quality composite materials. Customers benefit from the outstanding performance characteristics of our products.”
The first few years of IFP were challenging, and Pandya suffered due to production losses and subdued demand. But after the initial hiccups, IFP began to grow at an impressive pace with systems in place for precision manufacturing, stringent quality checks and an uncompromised pre-delivery testing protocol.
IFP was able to prove the quality of its FRP products through testing at several laboratories. Its product quality gained both acceptance and recognition among the top corporates of the country – Tata Chemicals being one of them.
An email from Tata Chemicals, one of IFP’s major clients, introduced C2FO to Pandya. The email was followed by a call from the C2FO supplier relationship manager (SRM), who explained the benefits of the program in detail to Pandya. IFP, at that point, was in a comfortable financial situation, and Pandya did not see the need to use the platform immediately.
However, the benefits of early payment and surplus cash resonated positively with him. Pandya was particularly impressed with the attractive characteristic of new fund infusion without the involvement of any institutional credit or its associated financial implications.
“Initially, we were a bit skeptical about using the C2FO platform. But after realizing its benefits – which were conveyed to us by the C2FO supplier relationship manager we went ahead with our first transaction.”
A few months later, after a few more conversations with the C2FO SRM, Pandya decided to give the platform a try. The reason for his first transaction was not a working capital crunch or a cash flow problem, rather it was an opportunity to gain surplus funds at a negligible cost and its recirculation into the market for greater returns. The experiment yielded positive results, and IFP began to participate regularly in the C2FO Early Payment Program.
IFP gained significantly higher returns through the rotation of funds that came in earlier than the credit period committed through the C2FO Early Payment Program. Also, IFP’s credibility in the market and its relationships with associates, vendors and clients were strengthened through fresh infusion of funds in the form of advances and credits.
“The inflation in the prices of raw material disturbs the cash flow, resulting in erosion of funds, which, in turn, affects the production capacity. Moreover, raising funds from the banks requires a lot of formalities and paperwork, which we never wanted.”
Besides IFP’s gains on the available surplus funds, C2FO’s working capital solutions also helped IFP address its other immediate working capital concerns, such as recurring overheads and administrative expenses. These concerns, had they not been addressed, could have prevented IFP from innovating and expanding its product line.
Pandya, with his experience of over 30 years, understands the pain points that plague small-scale manufacturing units. According to him, the surplus funds usually owned by small-scale manufacturing companies have depleted significantly due to rising commodity prices and escalating costs of talent and manpower. Furthermore, the lockdown-induced challenges of diminished demand and a cash flow deficit in the market has brought severe pressure on the availability of working capital for such businesses.
These businesses have had to grapple with regulatory and policy changes over the last few years making operations increasingly difficult. They are bearing the brunt of fast-deteriorating supply chain health. The economic conditions and the market’s inability to bounce back due to a paucity of both opportunity and finances is manifested in a scenario where several units have either turned sick, or have reached a stage of bankruptcy and shut down.
We would recommend C2FO to all small-scale suppliers like us. C2FO’s working capital solutions have decreased our financial burden and increased our credibility in the market.”
The only beneficial form of fund infusion, according to Pandya, that can help businesses in the small-scale category survive and flourish is early payment. He believes that with the help of C2FO’s Early Payment Program, small-scale units can acquire funds that are due to them ahead of time, without involving any bank, financial institution or other form of credit. These funds can then be used judiciously by small-scale businesses to enhance cash flow and keep moving ahead.
Working capital management mattered the most for Pandya, to keep the process and innovation going at a desired pace. To maintain smooth finances and move beyond the post-pandemic economic crisis, Pandya was on the lookout for a non-banking solution in line with IFP’s aspirations, and in C2FO he found a partner of choice. With the advantages of consistent cash flow availability and monitoring, Pandya was able to regulate and conduct his business with utmost financial independence. Quick cash flow enablement by C2FO provides IFP with more flexibility for improvisations in business.
“C2FO’s early payment on our invoices comes at interest rates much less than what banks or any other financial institution offer, which is what amazes us the most. With no disadvantages, C2FO is all about helping suppliers.”
The newfound financial strength with C2FO’s Early Payment Program has proven to be an efficient solution for IFP, helping the company attain continual growth on a broader horizon.
Success Snapshot
Intec FRP uses C2FO’s Early Payment solution to generate surplus funds, giving the company more flexibility.
With C2FO, Intec FRP has strengthened relationships with vendors and found an important alternative to traditional lenders.
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