#USA #Fintech #C2FO #Trade Finance

A Record Year for C2FO in Trade Finance

C2FO, the leading on-demand working capital platform, has recently announced that it has achieved a remarkable milestone, surpassing $400 billion in lifetime funding to its customers. This achievement, alongside reaching $1 billion in daily funding for the first time, reflects a profound transformation within the finance landscape.

Founded in 2008, C2FO has been instrumental in providing companies with better access to working capital, moving away from traditional banking methods and credit-based lending. As businesses continue to seek more effective financing solutions, the demand for alternative sources of working capital has surged.

In the year 2024, C2FO facilitated over 42 million invoice payments, achieving an average of 32 days early payment for companies across its network. Notably, their clientele includes six of the Fortune 10 companies, establishing C2FO as a preferred platform in a competitive financial environment.

The accelerated funding reflects a dire need for reliable working capital solutions, especially for small businesses. According to the Small Business Lending Survey released by the Federal Reserve Bank of Kansas City, loan approval rates for small enterprises have remained below 50% for four consecutive quarters, exacerbating the challenges faced by these businesses.

In contrast, C2FO's innovative platform has enabled companies to break free from traditional financing barriers, including risk-based underwriting and high interest rates. The company’s patented Name Your Rate® technology allows businesses to offer their own discount rates for early payments, thus enhancing access to capital without the traditional frustrations associated with lending.

An analysis conducted by C2FO on nearly $2 trillion in accounts payable revealed an alarming increase in payment terms, from an average of 34 days in 2019 to now reaching 41 days. This trend underlines the necessity for platforms like C2FO, which promote faster and more efficient access to funds.

Recognizing the urgent demand for innovative financing options, international organizations such as the G20, B20, and United Nations have acknowledged C2FO's role in developing sustainable working capital solutions in recent policy forums. This highlights not just the company's growth but also the global shift toward more dynamic and accessible financial practices.

In an exciting development, C2FO launched C2treds in May 2024, becoming the first US-based fintech approved by the Reserve Bank of India to operate through the Trade Receivables Discounting System (TReDS). This platform is designed to facilitate funding for micro, small, and medium enterprises (MSMEs), with current funding reaching $200 million. The upcoming regulatory mandates are expected to expand this reach significantly, as more enterprises will be required to register with TReDS in March 2025.

Furthermore, the International Finance Corporation (IFC) announced its partnership with C2FO to launch the first nationwide working capital platform for MSMEs in Africa in 2025, with the potential to unlock an impressive $25 billion in annual financing.

C2FO's founder and CEO, **Alexander