LSQ, a provider of technology-driven working capital financing and payments solutions, forged a partnership with the Michigan Minority Supplier Development Council (MMSDC), a nonprofit organization committed to driving economic growth in minority communities, to provide working capital assistance to minority-owned businesses in myriad industries across the state of Michigan.
“The lack of access to affordable working capital continues to be a barrier to growth for diverse suppliers,” Vikas Shah, chief revenue officer at LSQ, said. “Through our new partnership with MMSDC, we are working with the council and large corporate buyers to meet the working capital needs through supply chain finance programs.”
Supply chain finance (SCF) programs are buyer-sponsored and give suppliers the opportunity to receive early payment on their invoices. Buyers have the opportunity to deploy their own balance sheets and use LSQ’s early-payment platform or they can also receive a working capital lift as early payments are funded through LSQ’s SCF program.
Through the partnership, LSQ is offering minority-owned small-to-medium-sized businesses credit rates that are normally reserved for tier-1 suppliers. Traditionally, small-to-medium-sized businesses face higher rates or are excluded from SCF programs.
“Unfortunately, we see the economic disadvantages way too often with MBEs in the state,” Al Louis, director of MBE’s and certification at the MMSDC, said. “These businesses are poised to fill important gaps in the supply chains of major manufacturers but just don’t have access to the capital to do it. By working with LSQ and our large enterprise members through this partnership, we can make a huge difference in putting Michigan businesses owned by members of diverse communities on equal footing.”