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IMARK Member Furbay Electric Wins with Siemens EPT Program

The Extended Payment Terms solution enhanced our competitiveness and created significant value for our partners. Despite the challenges of COVID-19, the pragmatic solution ensured we were cash flow positive and proactive in securing one of the largest single project orders in our company’s history.

Tim Furbay, Owner

Customer: Furbay Electric Co.

Value: $750,000

Customer Key Facts:

  • Furbay Electric Co., located in Canton Ohio.
  • Furbay provides customers with quality electrical products and services for commercial, industrial or residential projects.
  • Founded in 1934, Furbay is a top 200 electrical distributor in North America.
  • Furbay is a Siemens distribution partner for more than 80 years with a main focus on SI low-voltage products.

Challenges

  • Furbay Electric Co., a Siemens distribution partner for more than 80 years, closed a contract to supply Siemens Busway Product for a data center project constructed in Ohio.
  • The contract value of more than $1 million imposed substantial stress on available cash.
  • Furbay was concerned that project schedule slippage and delay in cash collection would exceed cash flow management capabilities and Furbay’s ability to pay Siemens on time.

Solution

  • Siemens Sales contacted Siemens Financial Services (SFS Americas) to support the cash flow challenges which endangered Furbay from closing the project.
  • SFS Americas responded by offering a highly competitive solution based upon an agreed Extended Payment Terms (EPT) program.
  • The program provided a flexible, low-cost customer solution to accelerate business growth.
  • The joint value proposition allowed Siemens Sales to support their customer to meet critical operational and financial goals.

Benefits

  • The EPT program removed cash flow barriers, gave complete financial control to Furbay, enabling the distributor to win a large sales opportunity, and provided an optimized solution for the end customer based on Siemens competencies.
  • SFS Americas and IMARK further solidified an 84-year relationship with an important customer.
  • The deal represents a coordinated financial solution between SFS Americas, IMARK and Siemens Sales offering an overall value proposition for winning more business together with buying group members.  

For more information regarding the Extended Payment Term program, contact Mark Keegan, Siemens Financial Services, at Mark.Keegan@Siemens.com or 614-339-9720.