Notino s.r.o. was founded in 2006 under the name Internet shop s.r.o. The company is a leading online retailer of perfume and cosmetic products. The company is located in Brno in the Czech Republic and is also represented in Bulgaria, Romania, Poland, Slovakia and Hungary.
The challenge
Online retailer Notino was expanding across Europe and needed to optimise its working capital. One of the most pressing issues the company faced was a need to unify payment terms for all its suppliers. Because it was unsure when payments were due, Notino locked up significant finances in inventory. Moreover, the company was reluctant to tap expensive traditional bank loans to free up liquidity.
Notino’s remarkable 30% annual growth made it one of the fastest-growing e-commerce players in Central and Eastern Europe. In 2023, growth led to revenues exceeding €1bn but the group’s rapid expansion also placed pressure on working capital.
The solution
Notino discovered auto payment solution provider Roger’s embedded white label invoice financing solution. This allowed for uniform supplier terms, irrespective of language or currency differences. The innovative approach significantly reduced Notino’s administrative burden and improved cash flow.
The programme directly contributes to improving the Supplier Stability Indicator, a metric that predicts the likelihood that a business will experience significant financial or operational instability and which also evaluates supplier ESG engagement. A study by Dun & Bradstreet indicated that offering the solution to its suppliers would bolster Notino’s reputation in social responsibility and sustainability and enhance its overall ESG score above the industry average. This would strengthen the company’s market position and attractiveness to investors, customers and other stakeholders focused on ESG criteria.
Best practice and innovation
Notino’s solution, facilitated by Roger’s technology, significantly reduces administrative burdens through direct integration with Notino’s ERP system. It also provides a single interface for all suppliers.
The interface is customised for Notino, allowing suppliers to avoid manually sending invoices, discounts, credits and other financing related documents. Suppliers can use the online interface immediately by entering their ID number and electronically signing a contract, enabling them to get finance.
The invoice financing solution caters to suppliers of all sizes, from small businesses to large corporations, ensuring easy access to liquidity and competitive financing rates. This service is particularly beneficial for smaller foreign suppliers who may struggle to obtain credit lines with Notino, helping them remain competitive.
Mid-sized companies can optimise their cash flow, especially useful during seasonal fluctuations or unexpected expenses. Large suppliers often use this service too to support financing substantial volumes to optimise quarterly cash flow and annual results. Notino is relieved of the administrative burden of managing financing processes, with Roger handling onboarding and subsequent communication.
The solution includes IFRS standards and supports ESG criteria, emphasising sustainability and efficiency in financial operations and supply chain management.
The strategy enables the company to continue its sustainable growth and increase market share in Europe. In 2024, it’s projected that nearly €20m will be financed through the new solution (€5m was financed in the first quarter of 2024), marking almost a tenfold increase compared to 2023.
“This solution has provided a strategic advantage for our organisation, extending average payment terms to 45 days, yielding an annual working capital gain of €63m,” says Jakub Šedý, CFO.
Key benefits
Cost savings.
Headcount savings.
Process efficiencies.
Increased automation.
Errors reduced.
Manual intervention reduced.
Increased system connectivity.
Future-proof solution.
Exceptional implementation (budget/time).
Improved key performance indicator (KPI) metrics.
The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2024 awards attracted 389 nominations. To find out more please visit treasurytoday.com/adam-smith-awards
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