Cookie Manufacturer Lowers

Industry: Food & Beverage

Cookie Manufacturer Lowers Costs with Early Pay Discounts

A leading cookie manufacturer with $250 million in revenue, distributing to major retailers like Costco and Whole Foods, leverages innovative supply chain finance to reduce costs and boost liquidity.

Deal Structure & Key Details

A supplier credit transaction providing $10 million of 100% unsecured liquidity, enabling early supplier payments and extended payment terms.

  • Facility

    $10,000,000

  • Security

    Unsecured

  • Company Revenue

    $250,000,000

  • Supplier fee

    0% (Net to Client)

The Challenge

Strained by 60-day payment cycles and high supplier costs

The manufacturer faced a cash flow crunch that limited its ability to negotiate favorable terms. Seasonal demand and high supplier prices necessitated a solution that could accelerate payments and unlock working capital without disrupting existing relationships.

  • Restricted Liquidity
  • Higher COGS
  • Missed Discounts
  • Rigid Payment Terms

Solution

Finance as a Service

The manufacturer selects key invoices for early payment via Zenith’s funding portal. Zenith pays suppliers upon shipment, granting extended payment terms without direct supplier interaction. A streamlined "Finance as a Service" approach that provides rapid onboarding and allows the manufacturer to take full advantage of early payment discounts.

  • Extended DPO
  • Lower COGS
  • Unsecured Liquidity
  • Asset-Friendly Funding

results

Quantifiable Impact

  • 3 Weeks

    Swift Onboarding

    Onboarded and delivering results in just 3 weeks.

  • Improved DPO

    Extend payment terms from 39 to 120 days.

  • Supplier Discounts

    The company streamlined supplier payments, unlocking 50% more discounts through early payment.

  • -10%

    Cost of Goods Sold

    Lowered cost of good sold by 10% through Zenith early payment model.

The company has materially improved key financial metrics to achieve greater financial stability and flexibility, while giving their suppliers around the world a way to achieve the same outcomes.
supply chain finance

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