Growing companies often have limited cash to pay suppliers and vendors before their customers pay them. This is where Flexport Capital steps in. Their financing products match inventory outlays more closely with revenue, allowing companies to invest more in growth.
About Flexport
Flexport is a leading global supply chain technology and logistics services company serving Fortune 500 companies and emerging businesses. Flexport Capital provides many of these companies with quick access to documentation-light working capital financing.
This arm of the organization leverages Canopy for its loan ledger and calculation engine. Canopy is integrated with Flexport Capital’s client experience and supports everything from reviewing clients’ requests to finance shipments to reporting loan data to their funding partner.
A smooth launch process
Evaluation and Speed to Launch
25+ loan management system options Flexport evaluated
3 months to first customers
The Challenge
To create a seamless loan management system to help its customers navigate the complexity of global logistics, Flexport Capital needed a strong technology partner that could help design customized solutions for financing shipments. Finding a partner with the flexibility and scalability to complement Flexport’s existing tech stack was no easy task.
The Solution
After considering over two dozen options, Canopy stood out as the best loan management technology partner for its flexibility and willingness to fit Flexport’s requirements. Canopy’s platform structure provided a solid foundation for Flexport Capital’s products, and the Canopy team was willing to help accommodate their products.
Canopy provides a loan management system that fits our unique needs better than any other in the market.
Creating a Loan Management System that fit Flexport’s needs
Flexport Capital worked closely with Canopy to create a solution that met their high standards and delivered the best solutions for Flexport customers. As a starting point, their team developed a list of requirements before meeting with Canopy’s design and implementation team.
These requirements included:
- Allowing clients to request financing for inventory and logistics costs on their shipments
- Enabling Flexport team members to review and approve those financing requests
- Storing supplier payment information and associating that information with loans
Flexport Capital maintained involvement throughout the implementation process via regular meetings and iteration. This allowed them to test early, identify potential issues, and prioritize activities needed for a successful launch.
Within three months of the initial scoping and design, Flexport Capital went live with its first customers.
Smooth Sailing for Future Growth
In partnership with Canopy, Flexport Capital allows companies to maximize growth by seamlessly financing as they manage their supply chain, which is the most significant source of working capital constraints for growing importers and exporters.
This partnership made it possible for Flexport’s clients to:
Track Payments to Suppliers
Clients can see the status of financing requests after submission so they know their supplier will be paid as expected.
See Detailed Reporting
Clients can download detailed reports for their financing requests, loans, and repayments to support internal reporting processes.
Retrieve Loan Details
Clients are able to view key details about each loan on one page.
We came to the Canopy team and said we wanted to launch this new loan product, specifically focused on financing manufacturing deposits. We were able to do this in less than five weeks. In the first month, we generated $200K in revenue. It was a big success.
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