Multinational Retailer

Liquidity to support business goals

When a multinational retailer wanted to improve working capital, they turned to Wells Fargo Capital Finance.

Our team designed a Supplier Finance program that standardized payment terms at 90 days for the retailer’s suppliers. Each day of extended payment terms represented more than $1 billion in additional working capital for the retailer.

Through the program, we also successfully onboarded 95 of the retailer’s suppliers. We gave each supplier the option to receive a discounted early payment, which could greatly improve their days sales outstanding while converting accounts receivable into needed cash quickly. Suppliers continue to join the program weekly and enjoy these benefits.

Finally, through our servicing platform, we provided full payment transparency to the retailer and their suppliers with details on timing of payments.

Overall, this Supplier Finance program has improved liquidity for the retailer and their suppliers.