From Net-60-Day Payment Terms to Faster Cash

EXECUTIVE SUMMARY

ESG International (ESGI) is a specialized supply-chain services provider that plays a critical role in keeping global logistics moving. In an industry where "trapped cash" is a silent growth killer, ESGI faced a common dilemma: customer payment terms stretching toward 60 days just as new business awards demanded immediate capital.

Seasonal spikes and the natural “peaks and valleys” of operations made timing even more critical—ESGI needed a way to access working capital quickly when demand surged. By utilizing Cleo InvoicePay™, ESGI moved beyond fragmented financial workarounds to achieve true supply chain orchestration.

Embedded directly within their Cleo WebEDI workflow, InvoicePay allows ESGI to turn unpaid invoices into working capital in as little as 24 hours, ensuring they can fund expansion without operational strain.

Steve Nelson, President & CEO, ESG International, says, “During seasonal spikes, supply chain orchestration is about staying ahead of bottlenecks. InvoicePay gives us a fast, flexible way to access working capital so peak periods don’t turn into cash-flow stress.”

THE CHALLENGE: Net Terms That Slow Growth

Before adopting an orchestrated approach to finance, ESGI had been grappling with lengthening payment terms and disruptive cash flow gaps, gaps that become even more prominent during seasonal spikes and peak periods.

As terms stretched from Net 30 to Net 60, these gaps impacted ESGI’s nimbleness as a business:

• Delayed Opportunities: Planning for growth was prolonged or affected as leadership waited for cash to arrive.

• Immediate Investment Needs: New business awards from major partners required immediate adaptation, such as technology upgrades, to meet strict requirements.

• Management Friction: Leadership spent excessive time managing cash gaps—a "precious commodity" for entrepreneurs.

• Reliance on Credit: ESGI leaned on credit lines and “whatever it takes” workarounds, especially during seasonal spikes, to meet client expectations

WHY CLEO INVOICEPAY: Financing Where the Work Happens

ESGI was first introduced to Cleo during a growth opportunity with a major global automobile manufacturer, which required specific EDI protocols. Impressed by Cleo’s "side-by-side support," ESGI looked for a better way to bridge cash-flow gaps within the same environment.

ESGI chose Cleo InvoicePay because it delivers a fast, low-friction alternative to traditional lending:

• Embedded in WebEDI: No new platform to learn; financing is accessible directly where invoices are already sent.

• One-Stop Shop: Eliminates the need for a separate lender relationship.

• Rapid Liquidity: Approval within 24 hours, with funds accessible in as little as one day.

• Strategic Control: User-controlled selection allows ESGI to choose exactly which invoices to finance.

• Flexible Financing: Ability to access more working capital as sales increase, with ESGI increasing liquidity by 300% in one month.

• Trusted Partnership: Offered by Cleo, a partner ESGI already trusted for mission-critical EDI connectivity.

THE SOLUTION: Supply Chain Orchestration for Cash Flow

With Cleo InvoicePay, ESGI turned "invoice-to-cash" from a post-fulfillment scramble into a coordinated step in their supply chain workflow.

How InvoicePay Works

1. Activate: Enable InvoicePay directly within the Cleo WebEDI Portal environment.

2. Apply: Complete a quick 5-minute application for approval within 24 hours.

3. Offer: Once approved, review and accept the tailored financing offer.

4. Select & Submit: Choose specific invoices to finance and specify the advance amount.

5. Fund: Receive access to funds in as little as 24 hours to reinvest in the business.

RESULTS: Predictable Cash Flow Without the Strain

Since adopting InvoicePay, ESGI has realized measurable improvements in operational agility:

• Faster access to capital: Funds are unlocked in hours, not months.

• Predictable growth: Improved cash flow predictability allows for more confident planning.

• Operational resilience: ESGI successfully covered payments with other suppliers without straining on-hand cash levels.

• Zero relationship impact: Financing remains invisible to customers, with no impact on existing contracts and no credit score impact.

LOOKING AHEAD: Scaling with Confidence

For ESG International, the option to use Cleo InvoicePay has redefined how they approach expansion. With faster access to working capital, ESG no longer has to wait for 60-day payment cycles to clear before investing in what’s next—shifting from reactive cash-gap management to more proactive financial planning with less dependency on traditional lending.

This newfound liquidity option is a repeatable lever for growth. It gives ESG the confidence to pursue larger opportunities and high-volume demand knowing they can fund the necessary technology and team immediately, even while navigating the “peaks and valleys” that come with seasonal cycles and changing customer requirements.

Because ESGI can choose which invoices to finance (and even how much), they can use Cleo InvoicePay strategically—turning long payment terms into working capital when they need it most to keep operations moving and scale as fast as their opportunities allow.