Founded 30 years ago, Westcoast, a leading IT distributor, supplies a wide range of retailers and resellers with leading IT hardware and software – from laptops to servers and licenses. Most of the printer and toner cartridges sold in UK shops probably came via Westcoast. It earned revenues of almost £2.2 billion in 2017 and employs 1,600 people.Westcoast’s successful strategy is based on fast and efficient distribution and the ability to purchase enough stock to fulfil customer demand. So that means access to effective working capital is vital.
Westcoast’s successful strategy is based on fast and efficient distribution and the ability to purchase enough stock to fulfil customer demand. So that means access to effective working capital is vital.
In the typically risk averse IT channel, vendors offer short payment terms – just 14 days in one case. Meanwhile, Westcoast’s clients typically require longer terms, such as EOM + 30, 60, or even 90 days.
This presented Westcoast with a challenge. They had a funding gap between when they had to pay vendors versus the terms that they offered to clients. As a privately owned company, a flexible and competitive working capital solution is key, that’s where American Express came in.
With our simple Working Capital Solution Westcoast can take advantage of several benefits on both the payables and receivables side of their business. We offer flexible funding periods from 10 to 88 days – giving Westcoast the ability to manage their cash flow effectively.
We offer multi-million pound payment facilities to both Westcoast on the payables side and their clients. This means that Westcoast can hold sufficient stock and optimise cashflow through peak trading periods while also offering a finance solution to their customers that differentiates Westcoast in a competitive market.