Supply Chain Finance Benefits

A Win-Win for Buyers and Suppliers

Typically, optimizing working capital is a zero-sum game where you extend payment terms to the detriment of your suppliers. Supply chain finance changes the equation by letting you provide early payment flexibility and certainty to suppliers, supporting a healthier and more robust supply chain, all while improving your liquidity.

Strengthen Supply Chain

Eliminate production gaps and reduce risk by ensuring supplier financial stability.

Optimize Working Capital

Extend payment terms to unlock working capital without negatively impacting suppliers.

Improve Relationships

Providing suppliers affordable access to cash improves their cash flow and productivity.

How Supply Chain Finance works

Offer Early Payments With Upside

Supply chain finance lets you utilize a third-party funding source to fund supplier early payments in exchange for invoice discounts. You then pay the funder at the maturation of payment terms so you can hold onto your cash longer. Programs are often introduced in tandem with a terms extension.

SCF Diagram

The Evolution of Supply Chain Finance

Combining Funding Expertise, Supplier Service, and Technical Wizardry

LSQ has been delivering working capital solutions to small-to-medium businesses for more 25 years. Leveraging a wealth of experience and knowledge, our platform balances corporate treasury and supplier needs—while being flexible and intuitive. See what makes LSQ FastTrack® different.

How supply chain finance funding works - animation

Program Funding

Unparalleled flexibility

At LSQ, we structure your program to meet your changing liquidity needs by providing the most extensive program funding options of any supply chain finance platform.

You can utilize your own cash with dynamic discounting or we can fund a supply chain finance program through various third-party funding sources including LSQ. Our platform is flexible enough to combine multiple funding sources to run supply chain finance and dynamic discounting programs simultaneously.

  • Third-party funding sources

  • Self-funding options

  • Combine different funding sources

Implementation

Quick and easy to launch

With no-code, SFTP, and API data integration options we simplify the implementation process so you can accelerate your launch date and get started in a matter of weeks instead of months.

Supplier enrollment is a breeze, they can enroll in 2 minutes without invasive background checks, complicated liens, or personal information. We’ll verify their bank and that they’re an authorized supplier and they are ready to start accessing on-demand payment.

  • No-code, SFTP, and API implementations

  • 2-minute supplier enrollment with no red tape

  • Launch in a matter of days, not months

Working Capital Image
Supplier utilization and enrollment

Supplier Enrollment & Utilization

Maximize your investment

Our team analyzes your supplier and accounts payable data to formulate and execute a supplier enrollment plan to maximize adoption. We handle outreach and education for all your suppliers so you can stay focused on your business.

Suppliers love and use our platform because its uncomplicated, offers attractive rates, and provides access to invoice financing for their other receivables.

Total Payments Management

Maximize supplier utilization by opting for LSQ FastTrack to handle the payment of all of your supplier invoices.

Program ACCESSIBiLity

Expanding supply chain finance to the mid-market and beyond

For years, supply chain finance has only been accessible to large, investment-grade corporations. But with LSQ’s credit expertise and funding partners, it’s a whole new ball game. We’ve expanded the supply chain finance market to now include mid-market companies and those with unrated, private or non-investment-grade credit.

Expanding supply chain finance to the mid-market and beyond

BUYER EXPERIENCE

Manage and Analyze Program Success

  • Intuitive real-time dashboard and reports

  • Granular invoice and supplier management

  • Working capital, payment and spend insights

  • Customizable notifications and alerts

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LSQ’s buyer dashboard with working capital, payment & spend insights to help you manage & analyze program success – diagram.
Expand supplier access to working capital with early payments and our easy-to-use platform – dashboard screenshot.

SUPPLIER EXPERIENCE

Expand Supplier Access to Working Capital

  • Click-to-select invoices for early payment

  • Automate or set payments to new terms

  • Flexible same-day ACH payments

  • Advance all receivables with Invoice Finance

Case Studies

Hear From Customers and Suppliers

Related Content

Articles about Supply Chain Finance

  • complex fintechs have limitations as a working capital solution

    June 28, 2022

  • Exploring Supply Chain Finance Options: Bank Programs

    May 12, 2022

  • May 4, 2022

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