Categories: Blog


Andy Cagle


In today’s ever-changing business landscape, maintaining a strong supply chain and optimizing working capital are vital for a company’s success. As businesses strive to seize growth opportunities and adapt to market fluctuations, having access to flexible financial solutions becomes a strategic advantage. 

One such innovative approach that empowers buyers is the concept of flexible repayments in supply chain finance; we call it LSQ FlexTerm and it has been a game changer for a number of our clients.

Traditionally, companies participating in a supply chain finance program gain the working capital lift by extending payment terms and offering early payments through a third-party funder. But in today’s economic environment with tighter supply chains, we are seeing little appetite for supplier terms extensions, so buyers are having to find new ways to improve cash flow. 

And that’s what LSQ FlexTerm does.

Extended Payment Flexibility

FlexTerm as part of a supply chain finance program enables buyers to extend their payment terms beyond the original agreement with their suppliers. This extension provides buyers with a more extended window to settle their debt with LSQ, aligning their cash outflows more effectively with their revenue cycles. The additional flexibility eases cash-flow pressure and empowers buyers to manage their financial resources more efficiently.

Strengthened Working Capital

By having the ability to repay LSQ beyond the original payment terms, buyers gain access to a strengthened working capital position. This surplus working capital can be strategically invested in initiatives that drive growth, innovation, and competitiveness. It allows businesses to seize market opportunities and navigate challenges with added financial agility.

Accelerated Growth

With flexible repayments, buyers have the financial flexibility to invest in their growth strategies without compromising on supplier relationships. By extending their payment terms, buyers can ensure the stability of their supply chain while using the additional funds to fuel accelerated growth. FlexTerm’s agility provides businesses  a competitive advantage, especially in fast-paced industries.

Improved Supplier Relationships

Maintaining strong supplier relationships is crucial for a robust and reliable supply chain. With FlexTerm’s flexible repayments, buyers can offer early payments to their suppliers without extending terms, providing them with a consistent and predictable cash flow. This gesture enhances trust and collaboration between buyers and suppliers, leading to long-term partnerships.

Optimized Cash-Flow Management

Customizing repayment schedules with FlexTerm empowers buyers to make the most of their cash. They can tailor repayments to align with their cash flow peaks and troughs, allowing for better control and utilization of financial resources. This strategic approach enables businesses to navigate through financial challenges more effectively.

Flexible repayments in supply chain finance represent a progressive approach to financial management for businesses seeking growth and stability. By extending payment terms beyond the original agreement, buyers can unlock additional working capital, drive growth, and fortify supplier relationships. This strategic financial approach provides the flexibility needed to navigate through uncertain economic conditions and emerge as industry leaders. Embracing flexible repayments in supply chain finance is a powerful step towards securing a brighter and more prosperous future for businesses of all sizes and industries.

And LSQ FlexTerm is leading the way in bringing the solution to market.

Contact us for more information or to see if an LSQ supply chain finance program with FlexTerm is the right fit for your company.

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