U.S. Bank and Levantor Capital have expanded their partnership to offer additional flexible working capital financing options to U.S. Bank clients.
With this collaboration, U.S. Bank will now offer Levantor’s sales finance solutions, the companies said in a Wednesday (April 3) press release.
“By deepening our collaboration with Levantor, we can help our clients improve supplier relationships and more efficiently trade with partners,” Dan Son, senior vice president, working capital finance at U.S. Bank, said in the release. “Together, we can provide clients a larger slate of complementary working capital finance solutions, backed by the leading servicing capabilities of our corporate trust business.”
Levantor’s sales finance solutions help trade partners optimize payment terms, including those with suppliers in jurisdictions that are outside the U.S. Bank network, according to the release. These financing arrangements can help buyers extend payment while maintaining their established commercial and payment terms with their suppliers.
These new options join the existing range of risk management and financing solutions that U.S. Bank offers to help firms improve their working capital along supply chains, the release said. The bank expects clients to use both its own supply chain finance options and Levantor’s solutions to manage their growing supplier networks.
The addition of these sales finance solutions also builds upon the existing partnership of the two companies, in which U.S. Bank Global Corporate Trust and Custody serves as agent and custodian for Levantor’s working capital solutions.
“We are confident that our solutions will help U.S. Bank customers improve their working capital positions thereby enabling sales growth,” Mike Humphreys, chairman and founder at Levantor, said in the release.
PYMNTS Intelligence has found that 90% of small- to medium-sized businesses (SMBs) used at least one type of borrowing tool in the past year.
The greater the SMB’s annual revenue, the more likely that company is to use a variety of borrowing tools, according to “SMB Borrowing Dynamics: Trends, Tools and Decision Drivers,” a PYMNTS Intelligence and U.S. Bank collaboration.
The report found that higher-revenue SMBs tend to use 3.5 borrowing tools, on average, while their lower-revenue counterparts use 2.3, on average.