In an effort to make supply chain dealings faster and easier, U.S. Bank is partnering with trade finance FinTech LiquidX to facilitate transactions between buyers and sellers.
“With so many supply-chain challenges for businesses, we want to help make the financing process as smooth as possible,” Dan Son, head of global banking division at U.S. Bank, said in a press release Tuesday (May 10).
“This new collaboration will deliver a single intuitive interface that seamlessly connects suppliers, buyers and our bank in the supply-chain ecosystem. As one of the most trusted banks in the U.S., with some of the highest debt ratings, we can unlock valuable working capital for our clients,” Son added.
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Collaboration with both customers and suppliers, including mutual support around payments, has grown as supply chains have become more and more strained. The release noted that the partnership between U.S. Bank and LiquidX comes at a time of unparalleled stress in the global supply chain.
The collaboration will pair the bank’s “strong balance sheet” with LiquidX’s streamlined platform technology to help tackle friction around supply chain finance and cash flow challenges.
The partnership will also enable suppliers and buyers to connect their supply chain systems to U.S. Bank and transact through LiquidX’s platform. The financing solutions offered by the bank via the collaboration will offer near-immediate payment to suppliers while offering buyers extended payment terms.
Jim Toffey, CEO of LiquidX, said supply chains are looking for “much-needed liquidity” and the company is looking forward to meeting that challenge by offering its “scalable and flexible technology” in partnership with U.S. Bank, “one of the country’s largest and most innovative banks.”
The collaboration builds on existing supply chain finance solutions already available to U.S. Bank clients. The Receivables Purchase Program enables sellers to convert credit sales to immediate cash flows, and the Approved Payables Financing Program helps buyers pay suppliers early.
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