Case Study: S3 Industries

“Accelerated Payments is such a helpful bridge resource to us. There are always going to be those crunch issues, so considering how easy the facility is to use, it’s definitely a facility I’ll keep using.”

Kyuin Shim, President, S3 Industries

About S3 Industries

Rapid access to cash in a mission-critical sector: S3 Industries and Accelerated Payments S3 Industries supplies essential components to the oil and gas industry, where competitive forces and rising costs can put finances under pressure. Receivables Financing from Accelerated Payments meant that S3 Industries could accelerate its payments by releasing cash trapped in outstanding invoices and grow its business across North America.

The Challenge

The Solution

  • Accelerated Payments provided a Receivables financing facility to S3 Industries, delivering 80% of the value of an outstanding invoice that is immediately available as working capital
  • An easy-to-use online portal allows S3 Industries to select which invoices it wants to finance and when
  • As S3 Industries adds new customers, it can request an increase in its funding online and receive a reply in as little as 24 hours
  • The funding provides much-needed financial flexibility to S3 to grow its business in North America
  • Accelerated Payments makes a balance payment to S3 once a customer pays its invoice

Bridging The Gap When Clients Expect More

Receivables Financing from Accelerated Payments became a flexible, reliable, and rapid source of funding for S3 industries, at a time when getting finance from its bank wasn’t feasible. The funds available through Accelerated Payments meant that S3 Industries was able to maintain good customer relationships in what is becoming a very competitive industry – especially post-pandemic.

“Since Covid-19 and the downturn, if we hadn’t adapted, our core customers would’ve looked at other avenues: if we didn’t extend or amortize some of our payment terms, another supplier would,” said Kyuin Shim, President of S3 Industries. He said the Receivables Finance solution provided by Accelerated Payments let him meet his clients’ demands and not lose out to the competition. “Accelerated Payments filled that gap for us.”

That became especially important because, although the company’s revenues will grow threefold this year following the rebound in trade post-Covid, Kyuin noted that ‘’customers have not gone back to paying as quickly as they had previously.’’ Logistics costs have also stayed high. S3’s ambitions to expand its reach in new markets across North America would have proven difficult to achieve had it not been flexible with the payment terms it had with its customers.

Since the company has returned to growth and has benefited from the Receivables Finance model, Kyuin sees himself continuing to work with Accelerated Payments into the future.

“Accelerated Payments is such a helpful bridge resource to us,” he said. “There are always going to be those crunch issues, so considering how easy the facility is to use, it’s definitely a facility I’ll keep using.”

  • Rapid access to funds that its bank could not deliver
  • S3 receives a more flexible working capital solution on a non-recourse basis – no requirement for personal guarantees or long-term contracts
  • Improved cashflow that allows S3 to meet the extended payment terms its customers wanted, with receivables financing as a bridge
  • Easy-to-use software that makes it simple to submit its chosen invoices for financing
  • Helps the company stay competitive as a distributor of high-quality components, even as competitors attempt to gain market share

Benefits for S3 Industries at a glance

English (United States)