When a global manufacturer of plastic packaging products wanted to accelerate their cash conversion cycle and reduce borrowing costs, they turned to Wells Fargo Capital Finance.
Our team designed a Key Accounts Purchase program to purchase long-dated accounts receivable from the company, reducing the company’s days sales outstanding. The sale of receivables to Wells Fargo may improve the company’s working capital, reduce its borrowing requirements, and help it meet certain financial covenants.
The company now also enjoys increased availability under the credit line and a lower interest rate expense. Overall, the Key Accounts Purchase program has improved liquidity management and sales growth.