TLDR: a laboratory equipment pioneer's financial turnaround story with finofo

The global payments challenge

A leading Ontario-based laboratory equipment specialist was grappling with hefty wire charges and cumbersome financial processes in their US transactions. Their growth was being stifled by these unnecessary costs and inefficiencies.

Finofo to the Rescue: Enter Finofo. We revolutionized this lab equipment leader's financial dealings by:

• Localizing US Payments: Now, they operate like a US local, slashing those pesky wire fees.
• Streamlining Currency Exchange: We offered smarter, cost-effective currency conversions, making every dollar count.

Cost savings and Finofo's impact

• Massive Cost Savings: The company eliminated approximately USD 5,760 annually in wire fees.
• Stronger Supplier Relationships: Quicker, smoother payments meant happier partners.
• Market Agility: Their newfound financial flexibility has them moving faster and smarter in the market.

Finofo didn't just save money; we sparked a new era of growth and efficiency. It's not just about cutting costs; it's about empowering businesses to reach their full potential.

Explore the complete case study in detail here:

A Laboratory equipment leader's story

This rapidly expanding firm in Ontario, Canada, specializes in the design, supply, and installation of lab casework, fume hoods, and various laboratory equipment, building its reputation through years with a diverse clientele. Though successful in its sector and similar to other scientific equipment companies in sourcing materials from the USA, they encountered specific challenges in managing supplier transactions and maintaining effective relationships.

Balancing USD transactions

For this laboratory equipment specialist, acquiring raw materials is crucial, as it significantly influences the company's unit economics and growth trajectory. Despite having its customer base primarily in Canada, they procure materials from the US, conducting transactions in USD. This necessitates a payment process that is both efficient and cost-effective.

" We need to make payments in USD and handle invoices in the same currency. Currently, we're using the largest Canadian bank for these transactions, which facilitates the conversion and transfer of funds. Our orders are often of small value but are frequent and repetitive. As part of this process, we used to send 12 wires per month, each costing $40 USD, adding significantly to our operational expenses."
‍
Senior finance operations manager

Under their previous financial operations, this laboratory equipment leader incurred significant costs due to wire and transfer fees. In their routine transactions, like sending USD to suppliers, they faced charges from both their local bank and the recipient's bank. Additionally, a concealed percentage spread for currency conversions by banks further amplified their financial load. Compounding this, they confronted a direct annual loss of approximately USD 5,760¹ , , a consequence of these avoidable banking charges during wire transfers. This loss, which could have been allocated effectively within the company, escalated with the increase in transaction frequency, posing a larger financial challenge as they continued to grow and expand operations.

Streamlining global finance operations and improving vendor relationships

Finofo's introduction to this scientific equipment manufacturer's financial operations marked a significant turning point. Our platform offered a comprehensive solution to the challenges they faced:

Local ACH payments for a Canadian business

Finofo's integration enabled the enterprise to operate like a US local entity, streamlining payments to US suppliers and cutting significant wire transfer fees, thus substantially reducing their operational costs.

Additionally, Finofo's system enhanced their ability to manage supplier payments within the US efficiently. The company strategically deposits Canadian dollars into its Finofo account, which are then converted to US dollars. These USD funds are maintained in a US-domiciled account, enabling seamless transfers from their US account directly to suppliers' US accounts. This approach streamlines the payment process further, ensuring swift and efficient transactions and strengthening their financial management in cross-border operations.

Optimized currency exchange

Finofo's platform offered algorithmically determined spreads on transactions, providing the laboratory equipment specialist with a predictable and financially beneficial arrangement, especially for recurring payments to suppliers.

Improving supplier relations

The ability to effortlessly transfer funds between CAD and USD accounts through Finofo quickened payments to suppliers, thereby increasing operational efficiency and strengthening supplier relationships.

‍Cost savings and enhanced market agility

With Finofo's fixed spreads, this industry leader realized savings on every recurring transaction and eliminated the annual USD 5,760 expense incurred from wire transfer fees, boosting their financial agility in the market. Finofo's innovative approach is a game-changer for specialized manufacturers like this, injecting vital funds back into their business and significantly contributing to their growth and expansion.

The future looks promising for this laboratory equipment manufacturer, thanks to their Finofo partnership. The collaboration has ushered them into a new era of growth, marked by cost efficiencies, enhanced supplier relations, and improved operational and financial performance, paving the way for sustained business success.

__________

^{1 The company's annual cost calculation for wire transactions is based on a $40 USD fee per transaction with an average of 12 transactions per month.
This equates to an annual expense of $40 x 12 x 12 (months) = $5760}