This is an excerpt from an article on AVC about enterprise-oriented networks:
“C2FO is a network of businesses and their suppliers that solves a working capital problem for the suppliers and provides a better return on capital to large enterprises. Here is how it works: C2FO has a sales force that calls on large enterprises and shows them how they can use their capital to earn a better return while solving a working capital problem for their suppliers. They bring these large enterprises onto their platform and, using C2FO, they recruit their supplier base onto the platform. They also bring all the accounts payable for the large enterprise onto the platform. Once the network and the payables are on the platform, the suppliers can bid for accelerated payment of their receivables. When these bids are accepted by the large enterprise, the suppliers get their cash more quickly and the large enterprise earns a return on the form of a discount on their accounts payable. C2FO takes a small transaction fee for facilitating this market.”
What caught my eye is that the C2F0 model is an excellent way for F500 companies to share value with smaller suppliers in less developed countries where capital is scarce. If a F500 company were to adopt the C2FO model worldwide for small suppliers, I think that would be a major social program consistent with social entrepreneurship. In fact, maybe it should be a requirement for all companies applying for B Corp status (above a certain size).
A shortage of capital is a major issue in the developing world and the C2FO model helps to organize capital to solve the problem. Perhaps World Bank or Inter-American Development Bank could provide a similar service discounting F500 accounts receivables for small suppliers or partner with C2FO to expand internationally.
I think if I was the CEO of C2FO I would build my brand and value proposition around helping small businesses around the world solve their capital problems and not around "delivering efficient cash flow and bold returns". Package the pitch to F500companies around social responsibility with a return. I might also consider changing the strategy and provide technical infrastructure for a fee to organizations like World Bank or Qatar Foundation (and no longer need a direct sales force).