The Toro Co., a leading worldwide provider of turf and landscape maintenance equipment and precision irrigation systems, has deployed PrimeRevenue’s technology and services with financing provided by Wells Fargo HSBC Trade Bank to power Toro’s Supply Chain Finance program. The SCF program is an important component in the company’s action plan to reduce working capital, improve its cash conversion cycle, and deliver increased shareholder value.
Through the new platform, Toro suppliers will gain online visibility to their Toro-generated receivables in advance of their due date, and the option to sell receivables for cash in advance of the original due date — with financing provided by Wells Fargo. With a click of the mouse, enabled Toro suppliers gain access to on-demand advance payment of their receivables at financing rates based on Toro’s cost of financing. For most Toro suppliers, SCF financing will be a fraction of what they pay with alternative invoice discounting structures. The program, launched in July 2009, is live and in production with select suppliers in the United States.
“This program is a key element in our overall working capital strategy,” said Tom Larson, vice president and treasurer at Toro. “We’re expecting PrimeRevenue’s SCF platform to help us realize our objectives while giving our suppliers an extremely attractive on-demand financing facility based on Toro’s investment-grade cost of financing.”
Joe Weisskopf, vice president of North American sales at PrimeRevenue said, “We’re seeing more world-class companies like Toro deploy SCF solutions to their supply base because, in today’s economy, SCF makes a great deal of sense. It helps companies reduce working capital while at the same time giving their suppliers access to investment-grade credit to address their own cash flow needs.”
Bloomington, Minn.-based Toro Co. is a worldwide provider of turf and landscape maintenance equipment, and precision irrigation systems.