U.S. Bank has entered into a collaboration agreement with trade-finance fintech LiquidX to help expedite and simplify supply-chain transactions between suppliers and buyers.
This collaboration – which comes at a time of unparalleled stress in the global supply chain – will pair the bank’s strong balance sheet with LiquidX’s streamlined platform technology to help address supply-chain- finance friction and cash-flow challenges facing many companies. Suppliers and buyers will be able to connect their supply-chain systems directly to U.S. Bank and transact through LiquidX’s easy-to-use platform. U.S. Bank financing solutions delivered through this collaboration will enable suppliers to be paid nearly immediately and buyers to receive extended payment terms.
“With so many supply-chain challenges for businesses, we want to help make the financing process as smooth as possible,” said Dan Son, who oversees global trade and supply-chain finance at U.S. Bank. “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.”
The collaboration between U.S. Bank and LiquidX enhances existing supply-chain finance solutions currently available to U.S. Bank clients. The Receivables Purchase Program allows sellers to convert credit sales to immediate cash flows and reduce days sales outstanding while extending payment terms for buyers. The Approved Payables Financing Program helps buyers pay suppliers early, reduces payment-processing costs, and gives suppliers faster and more predictable access to cash.
“We are thrilled to enter this collaboration with U.S. Bank, one of the country’s largest and most innovative banks, to deliver much-needed liquidity to today’s supply chains,” said Jim Toffey, CEO of LiquidX. “We are proud that our scalable and flexible technology will make it easier, faster, and cheaper for U.S. Bank and its corporate clients to transact.”
As supply-chain decisions become strategically critical for businesses, Son said, innovative supply-chain- finance solutions provide opportunities to strengthen vendor and client relationships, reduce costs, and diversify sources of working-capital funding. In addition, supply-chain finance solutions can advance other important company priorities, such as Environmental, Social and Governance (ESG) initiatives by providing financial incentives and greater access to working capital for diverse suppliers.