Meet Far Ocean Group, a one-stop provider of integrated food solutions that has built a solid reputation for freshness for over more than 40 years. They offer a wide variety of products – from premium Wagyu beef to gourmet seafood. Far Ocean is recognised for their superior quality by the most discerning producers, distributors, and consumers worldwide – from Europe to the United States, Brazil, Korea and Japan. They have multiple lines of businesses and every step in their operations aim to bring consumers the freshest products, customised offerings, thoughtful service and deep expertise.
One of the most striking impacts of Covid-19 pandemic was the hit on domestic and global supply chains – and that caused a significant disruption to Far Ocean’s operations. It also created a dent in the overall demand of their products and services. Some of the key challenges that the company was facing was to improve and stabilise their cash flow without increasing financial debt, and also to better manage their payables and receivables. While taking on those challenges, Far Ocean had one goal in mind – to ensure that they emerge stronger after the crisis.
CardUp is a credit card enablement and automation platform that allows you to shift non-card payments to your credit cards. With CardUp for Business, you can optimise working capital in a fast and convenient manner as you get your invoices paid on time while you extend your payment terms by up to 2 months, interest-free. Recurring payments only need to be scheduled once and your team can track all these past and upcoming payments on a single dashboard with ease.
By shifting their payments on CardUp’s platform, Far Ocean was able to improve the efficiency of its operational procedures and save costs – all while optimising their working capital concurrently. “CardUp has been instrumental in allowing the digitisation of our payables to save on manpower time which in turn translates to cost savings”, explained Jerrold Quek, Chief Operating Officer of the group. Since then, Far Ocean was also able to facilitate their B2B payments more efficiently.
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Healthier cash flow to fund operating activities during low tides
By paying their large invoices with their credit card through CardUp, it allows Far Ocean to fully utilise their credit card line to free up cash. Through CardUp’s platform, they are able to leverage on their pre-approved credit and extend their payment term by up to 2 months, interest-free. Being able to leverage on their credit line, Jerrold explains, “has been pivotal in helping to drive healthy working capital ratios” for Far Ocean.
When Far Ocean charges an invoice amount to their credit card on CardUp, the other party receives the payments on time while Far Ocean only pays off their credit card statement when it is due. This eventually allows Far Ocean to conserve more cash flow and overcome sudden interruptions in their operation and supply chain during the pandemic.
"A clear value add is the ability to access interest-free credit to help drive working capital needs for large recurring business. This has been pivotal in helping drive healthy working capital ratios, ensuring that we continue to drive sustainable business growth during and after the pandemic."
–Jerrold Quek, Chief Operating Officer of Far Ocean Group
Enhanced productivity from streamlining payables
As a leading purveyor in the food industry, Far Ocean has a high number of payables and receivables. With CardUp’s card enablement platform, the company was able to schedule the large number of payments in bulk. They can also schedule it in advance or in recurring schedules, and pay only one consolidated bill every month. This enabled them to settle their payments a lot faster and more productively.
After which, their team can view and handle all past and upcoming payments on a digital dashboard – making it easier and less resource-intensive for their accounts payables team.
Significant time, costs and manpower savings
With the increased operational productivity and efficiency, Far Ocean is able to process the high numbers of monthly invoices with lesser time and manpower cost. This in turn, generates great cost savings for the company. The company now has more time and resources to focus on other important aspects such as expanding their business and sourcing for more products.
How to conserve more cash during tough times using a credit card?
CardUp is committed to helping businesses emerge stronger and thrive better in the new normal. The ever-evolving pandemic situation has and will continue to put companies all around the world in unprecedented circumstances. For many businesses, meeting cash flow needs remains a top priority in order to stay afloat and emerge stronger from the pandemic.
For businesses such as Far Ocean, CardUp’s platform provides a fast and convenient way to conserve cash flow during down times, and helps them ensure sustainable business growth during down times.
CardUp’s Business Transformation Support provides lowered fees to support businesses better and manage working capital needs by freeing up more cash at a lower cost – making it a more cost-effective option compared to other financing options such as loans and overdrafts.