LSQ, a provider of technology-driven working capital financing and payments solutions, has partnered with the Michigan Minority Supplier Development Council (MMSDC) in Detroit to provide working capital assistance to minority-owned businesses in myriad industries throughout the state.
“The lack of access to affordable working capital continues to be a barrier to growth for diverse suppliers,” says Vikas Shah, CRO at LSQ. “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.”
The MMSDC is a nonprofit organization committed to driving economic growth in minority communities. Supply chain finance (SCF) programs are buyer sponsored and give suppliers the opportunity to receive early payment on their invoices.
Buyers can deploy their own balance sheet and use LSQ’s early-payment platform or 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 businesses credit rates that are normally reserved for tier-1 suppliers. Traditionally, small-to-medium businesses face higher rates or are excluded from SCF programs.
“Unfortunately, we see the economic disadvantages way too often with minority business enterprises (MBE) in the state,” says Al Louis, director of MBEs and certification at the MMSDC. “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.”
For MBEs whose buyers do not offer SCF programs, LSQ offers a variety of accounts receivable and inventory financing options.
The MMSDC advances its mission by facilitating more than $36 billion annually in economic output between corporations and certified minority business enterprises. Founded in 1977, the MMSDC certifies minority businesses, develops their capacity, and facilitates inclusive procurement opportunities.