How does this work in detail?

Sales optimization

Current process

After completion of goods they are stored in the warehouse. After the goods are sold, they are delivered to the customer and the customer pays for the goods on the due date (usually between 30 and 60 days after delivery).

New process

After competion of the goods they are sold to jtw at the agreed sales price. After the goods are sold to the customer, they will be delivered to the costumer. jtw pays the company immediately and the customer pays jtw within the agreed peroid.

How does the sales optimization work:

  • before
  • after
Shortening of
the balance sheet

The goods are sold to jtw at the time of completion and are thus added to the balance sheet of jtw. This shortens the balance sheet of the company by the value of goods for the time until the sale.

Stabilization of
the sales chain

jtw pays the company the agreed purchase price immediately after completion and takes over the goods. At the time of sale jtw receives the purchase price on the agreed due date. The absorption of the goods by jtw allows the company to use the working capital release to finance growth.

Strengthening of
the liquidity

The company receives the sale amount immediately after completion and sale to jtw. This improves the liquidity of the company and reduce the company’s accounts receivables (reduction of the key figure DSO).

Reduction of
the debt captial

The improved liquidity can be used to finance growth or planned operating investments without the need for borrowed capital.

Optimization of
the balance sheet ratios

The reduction in inventory combined with immediate payment improves the DIO, DSO and C2C metrics as well as the debt ratio.

Enhancement of
the credit rating

The optimized balance sheet ratios have an impact on the credit rating of the company. In the medium term, the company´s rating will improve.

purchasing optimization
inventory optimization

jtw.finance GmbH
Maximilianstraße 2
80539 München
Germany

Tel +49 (0)89 20 500 85 637
Fax +49 (0)89 20 500 81 50
[email protected]