Welcome to the. program. C2FO makes it easy. We can help. Visit c2fo.com/kcsouthern to get started

Transcription

1 Welcome to the program. Improve your cash flow on demand at your best rate for any reason As a valued partner of Kansas City Southern, we are pleased to welcome you to our program. A dynamic early payment marketplace that gives our suppliers the ability to request early funding on approved invoices. Get paid early today Grow your business Meet seasonal demand Control cash flow Manage financial metrics C2FO makes it easy Visit c2fo.com/kcsouthern to get started Access C2FO for free to view your Kansas City Southern invoices Request early payment as needed at a rate you choose Kansas City Southern pays you directly, only faster You control which invoices you want paid early You choose if, and when, you participate You have access to free, multi-lingual support No contracts, paperwork or fees No IT or technology implementation required We can help / kcsouthern@c2fo.com

2 FAQs for C2FO early payment: What is C2FO? Why should I use C2FO? What does C2FO do? How does this help my business? Why is Kansas City Southern offering C2FO? I have funding, why would I need C2FO? Do I have to use C2FO if I like my payment terms? Why would I give a discount for early payment? What companies use C2FO? How do I contact support? How does C2FO work? How does early payment work? How do I get started? How does C2FO keep my information secure? How do I receive payment? How soon do I receive payment? What is market clear? Do I have to upload my invoices to C2FO? Supplier education guide

3 What is C2FO? What does C2FO do? C2FO (Collaborative Cash Flow Optimization) is a program that is managed on behalf of Kansas City Southern to help your business improve cash flow. Early payment on approved invoices Instead of borrowing money from a third-party or using a static or less-than dynamic discounting method, C2FO gives you the power to negotiate early payment on approved invoices, on demand, and at a rate you choose. On-demand funding where you Name your rate Because you control the rate, you can access funding for your business at a lower cost than other options, such as factoring. The program is also flexible. You can choose which approved invoices you want paid early. You can use C2FO only when you need to control your cash flow. LINE OF CREDIT FACTORING EASE OF USE COMPLEX EASY COMPLEX RATE Prime -1% to 4% Name your rate 10 to 20%+ AVG TIME TO ACCESS FUNDING 3+ weeks 2 days 2 days to weeks FEES.5 to 1% / year None 1 to 3% / year C2FO is NOT: A factoring service Supply chain financing An electronic payment alternative A traditional bank loan or asset-based lending

4 What is C2FO? How does this help my business? No other working capital option offers the flexibility and control of C2FO. With C2FO you can: Choose which approved invoices you want paid early Choose when you want to participate Lower your days sales outstanding (DSO) Take control of your cash flow Reduce your cost of borrowing and grow your business faster Access working capital without fees or paperwork Name Your Rate for working capital Easily view your approved invoices in a secure online environment Have flexibility and control of your cash management and hit key metrics on demand Enhance your working capital as needed without changing contractual payment terms Handle seasonal peaks and valleys Why is Kansas City Southern offering this program? Customers like Kansas City Southern who are concerned about supply chain health and better supplier relationships rely on C2FO to help suppliers accelerate invoice payments. What companies use C2FO? We serve companies from small businesses to Fortune 50 customers around the world. Each year, we handle millions of transactions and billions of dollars of early cash flow delivery. Suppliers use C2FO for early payment because it offers affordable working capital to help grow their businesses and meet seasonal demands. Suppliers also use C2FO to manage financial metrics and take control cash of flow. View case studies

5 Why should we use C2FO? I have funding, why would I need C2FO? Third-party financial intermediaries require risk-based underwriting, complicated paperwork, higher rates and recurring fees in general. With C2FO, you get access to your cash with no liability, no paperwork and no hassle. Best of all, C2FO offers a lower cost of funding. Because it is flexible and on-demand, you can easily use C2FO as part of a mix of business funding options. Do I have to use C2FO if I like my payment terms? The C2FO program is optional. However, you should register your C2FO account even if you don t believe you need the program today. C2FO is unique because you can access funding on demand when a need arises. There is no paperwork, fees or hassles. Consider C2FO for: Seasonal demands Growth initiatives Managing quarter-end financial metrics Unexpected late payments from another customer Guaranteeing cash flow to take advantage of early payment discounts from your suppliers Using C2FO does not require changing contractual terms. C2FO does not affect any existing discounting on payment terms. Negotiated discounts are applied first. Any early payment through the C2FO marketplace is in addition to your negotiated discount. Why would I give a discount for early payment? If your cost of borrowing is higher than the discount you are offering through C2FO, this program offers a better working capital option. There are many other reasons your business may need early payment. Some of these are situations you cannot control, such as late payment by another customer, responding to seasonal demands, or funding an opportunity to grow your business. C2FO lets you take control of cash flow to meet these demands without the hassles and delays of paperwork.

6 How does C2FO work? How does early payment work? C2FO is a working capital market where you and Kansas City Southern both benefit. Kansas City Southern uploads approved invoices into C2FO. You request early payment of your approved invoices at a rate that works for you. C2FO matches your offers. You are paid by Kansas City Southern directly, only faster. Simple. Access C2FO for free to view your invoices. Request early payment as needed at a rate you choose. Kansas City Southern pays you directly, only faster. C2FO is EASY TO USE: No contracts, paperwork or fees No IT or technology implementation required Your invoices are uploaded by Kansas City Southern to the C2FO secure online environment Low-effort, so you can focus on your business You are paid directly from Kansas City Southern You control which invoices you want paid early and when You choose if, and when, to participate Access live, multi-lingual support Supplier education guide

7 How does C2FO work? How do I get started? You should receive s from Kansas City Southern & C2FO with information on the program and how to register your account. You may also learn more about the program and register your account online: c2fo.com/kcsouthern If you need assistance with registration, call or us at: or kcsouthern@c2fo.com How does C2FO keep my information secure? C2FO is a no-risk, secure program. With invoice payment acceleration, C2FO only facilitates the price discovery. No payment account information is stored. There is no risk. You will continue to be paid directly from Kansas City Southern, just sooner. View our security information SUPPLIER SUPPORT 72 N E T P R O M OT E R S C O R E* 2015 / 2016 Trusted by suppliers. A Net Promoter Score (NPS) of 50+ is considered world class among experts. C2FO has a supplier support score of 72 and a supplier recommendation rate of 91 percent.

8 How does C2FO work? How do I receive payment? After payment offer is accepted, you continue to get paid directly from Kansas City Southern, just like you do today only faster. C2FO does not make payments on behalf of Kansas City Southern; we help you and Kansas City Southern match a discount offer in exchange for early payment. Invoice processing by Kansas City Southern stays the same. The only aspect that changes is how soon you get paid and the invoice amount. C2FO provides you with an award file for your records so you can track your invoices that are paid early and the amount paid. How soon do I receive payment? When you are awarded early payment from Kansas City Southern through C2FO, your early payment will be processed on the next Kansas City Southern pay date listed. You see this on your invoice summary and the award file provided by C2FO. You can receive payment in as little as 24 hours. The Kansas City Southern market clears daily (M-F) 11:00am CST / 12:00pm EDT/EST. All early payment offers that come in before that time will be considered for early payment. Remember to take local bank holidays into consideration when anticipating payment. Standard float time on ACH payments still applies, so remember to consider float time as well as local bank holidays when anticipating payment. You will be notified by for any invoices that have been awarded early payment. Supplier education guide

9 How does C2FO work? What is market clear? C2FO is a market that allows real-time, on-demand dynamic discounting in return for early payment. Like other markets, C2FO has a clearing time each day. This time is based on each customer's region. The Kansas City Southern market clears daily (M-F) 11:00am CST / 12:00pm EDT/EST. Americas: 11:00am CST / 12:00pm EDT/EST Europe/Middle East: 5:00pm BST/GMT Asia-Pacific: 12:00pm China Standard Time All offers will be considered for early payment daily, Monday through Friday. Do I have to upload our invoices to C2FO? No. Kansas City Southern uploads approved invoices to C2FO that are eligible for early payment. You simply log in to C2FO, choose which of the approved invoices you would like paid early, and set an offer for a discount. Supplier education guide

10 Global support by region Americas United States/Canada: Europe United Kingdom: / Austria: France: Germany: Belgium: Hungary: Netherlands: Poland: Spain: support-uk@c2fo.com Asia-Pacific Taiwan: China: / India: / Australia: support.apac.cn@c2fo.com (Mandarin & Cantonese support) support.apac.en@c2fo.com (English support) Supplier education guide