Evoqua Water Technologies Pays Suppliers Early While Funding Sustainability and Expansion Initiatives

By PrimeRevenue • Published April 20, 2021 • 3 minute read

Evoqua Water Technologies is a $1.4B company providing a wide range of water and wastewater treatment systems to industrial, commercial and municipal entities around the world. With operations in the U.S., Canada, the U.K., the Netherlands, Italy, Germany, Austria, China and Singapore, millions of people and thousands of companies rely on Evoqua every day for clean, safe water.

In early 2019, a key focus for Evoqua was economic sustainability both for its own business and for suppliers and the ability to expand via acquisitions. This led to Evoqua launching a supply chain finance program, powered by PrimeRevenue.

The cash unlocked from supply chain finance has been invaluable to Evoqua in its mission to achieve the gold standard of sustainability and achieve its acquisitions.

~$21M

IN CASH FLOW GAIN UNLOCKED
WITHIN FIRST SIX MONTHS

“The supply chain finance program adds to our business, our philosophy, and our core values of sustainability. It ensures sustainable relationships and I think that’s a very good addition to what we’re standing for as a company.”
— Reinhold Zeiner, Senior Director of Finance and Shared Services International.

The program goes beyond fueling environmental sustainability objectives. Evoqua is also dedicated to practicing economic sustainability for the entire supply chain. Suppliers on Evoqua’s supply chain finance program can take early payment for invoices as soon as the day after the invoice is approved (typically around day 10).

Through offering access to accelerated payment on invoices, suppliers both large and small are able to strengthen their financial position and more efficiently manage cash flow.

 EARLY PAYMENT FOR INVOICES
TYPICALLY AROUND DAY 10

PROGRAM EXPANSION
TO ADDITIONAL BUSINESS UNITS

RECEIVED GLOBAL RECOGNITION
AT 2019 SCF AWARDS

“We really want to open supply chain finance up broadly to every supplier globally,” says Zeiner. “Especially for international operations, that is key. Suppliers are starting to finance and if we can help them at reasonable rates, that’s certainly something that attracts them and helps them.”

An added benefit of supply chain finance is that the company can leverage the program to increase its global presence through acquisition – despite recent geopolitical tensions and an uncertain economic climate. As a direct result of a laser focus on working capital improvement, Evoqua has strategically aligned payment terms with industry standards and the free cash flow generated from its PrimeRevenue-led supply chain finance program has helped fund numerous strategic acquisitions.

Successful Supply Chain Finance Program Unlocks Future Growth Potential

Since implementation, Evoqua’s supply chain finance program has already seen tremendous growth. With 4 funders providing more than $85M in liquidity, the program covers $400M+ in spend across 330+ targeted suppliers. Moving forward, the company plans to broaden the program’s reach by adding two additional business units and continuing to onboard new suppliers.

Impressive supplier participation clearly demonstrates the value supply chain finance brings to suppliers. Of the enabled suppliers on the program, 72% are actively trading invoices and 25% have enrolled in Auto-Trade, meaning suppliers are taking advantage of access to early payment.

PROGRAM COVERS

$400M+

IN SPEND ACROSS 330+
TARGETED SUPPLIERS OF ALL SIZES

Evoqua’s supply chain finance program is key in helping the company exceed its sustainability and growth expectations. Not only has Evoqua been able to meet their expansion goals without sacrificing their financial position, they’ve done it with no disruptions in their supply chain or operations and while providing suppliers access to cash. Both parties are seeing significant results, confirming how supply chain finance can truly be a win-win for all.