Case Study Westcoast: Working Capital Optimisation

American Express’ payments solution gives Westcoast improved cash flow than previously experienced. The working capital solution is advantageous for Westcoast because the payment period of up to 58 days with American Express is considerably longer than the conventional arrangement with suppliers. As a result, days payable outstanding (DPO) are increased and Westcoast’s working capital is optimised. Westcoast can access the multi million pound credit facility that it has with American Express. This incremental capital facility enables Westcoast to buy at competitive prices and meet customer demand.

At the same time Westcoast's suppliers also benefit from improved cash flow due to American Express' working capital solution meaning they receive payment more promptly than via a traditional invoicing process.

As a supplier, Westcoast also gains working capital benefits from earlier receipt of customer payments because of the electronic payments solution. Westcoast receives payment five days after their customer’s authorisation, which is quicker than conventional invoice terms, while the customer pays only when the statement is due.

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