Case Study: Costco Wholesale increases investment yields and helps suppliers with C2FO

Costco Wholesale boosts treasury yield 400 to 500 bps with C2FO

Costco Wholesale faced a challenging working capital environment, with low investment yields and expensive financing options for its suppliers. To improve supplier relationships and use its own capital more efficiently, Costco sought a new finance program. The company chose to implement a dynamic discounting solution with the vendor C2FO.

C2FO's solution was the Costco Early Payment Program, a digital platform allowing suppliers to selectively accelerate invoice payments at their chosen discounts. This provided suppliers greater cash flow control. The results included a cumulative 186% growth in early payments over five years and suppliers receiving payment 22 days earlier on average. For Costco, C2FO's program generated significant income and increased treasury yields by 400 to 500 basis points.

Costco Wholesale