Increase in Top Line by 30%: How JiT Finco's Purchase Finance Program Helped an Automotive Parts OEM

As a Chief Sales Officer, imagine going from town to town appointing distributors and retailers for your automotive parts OEM business. You have great products, an extensive network, and a robust sales strategy but your year on year sales are not up to potential. Primary reason being distributors are inability to source more from you due to their limited buying capacity. Distributors are worried about meeting your payment deadlines, their inward cash flows, and their credit periods.?

One plausible solution to getting your distributors to purchase more from you is by arranging working capital lines for distributors but most of them are already leveraged and the working capital limits have been maxed out. The only viable solution is having the distributors recover their receivables faster and that is where JiT Finco’s Purchase Finance Program comes into play.

One such OEM was able to add 30% to their top line by partnering with JiT Finco's purchase finance solution. The main challenge faced by the OEM was that 70% of their distributors' working capital was tied in receivables, limiting their buying capacity.

JiT Finco's purchase finance solutions provided an excellent means to convert outstanding receivables into cash faster. By helping the distributors get paid faster for the sales made to the retailers they are enabled to? invest more in inventory and grow their business. They no longer had to worry about their cash flows or credit periods, as JiT Finco provided them with the necessary financing on Day 2 of sales.?

The OEM not only increased the distributor buying power but also empowered them to buy more from the OEM and sell more to the retailer network resulting in a 2X sales growth for the OEM. The success of the OEM's partnership with JiT Fiinco can be attributed to the fact that the program was designed to meet the specific needs of the automotive parts industry. It was flexible with a 100% digital journey to maximise reach and coverage.?

JiT Finco's Purchase Finance Program for distributors is a prime example of how innovative financing solutions can help businesses overcome their financial challenges and achieve growth.

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