Case Study: Costco Wholesale Corporation achieves higher returns and accelerated supplier cash flow with C2FO

Costco Wholesale Corporation - Customer Case Study

Costco Wholesale Corporation faced a difficult working capital environment in 2011—SMB lending was constrained, supplier financing alternatives were expensive, and yields on treasuries and short‑term assets were at historic lows. To improve supplier relationships, reduce supply‑chain cost and risk, and earn a fair return on excess cash, Costco evaluated several options and selected a third‑party dynamic discounting approach, ultimately choosing C2FO.

C2FO deployed its supplier‑pull dynamic discounting platform with simple onboarding and flexible APR controls, letting suppliers accelerate cash at fair rates while Costco optimized income. The program delivered measurable impact: billions in additional working capital flows, higher income and gross margin (APR ~400–500 bps above Treasury), suppliers receiving cash ~22 days early, five‑year cumulative annual growth of 186%, unique supplier participation up 141% Y/Y and total participations up 525% Y/Y, and a one‑day market result of $179.8M volume and $339,778 income (avg APR 4.5%). C2FO’s solution proved scalable and beneficial for both Costco Wholesale Corporation and its suppliers.

Costco Wholesale Corporation

Joseph Grachek

VP Merchandise Accounting Controller