U.S. Bank, LiquidX Collaborate to Simplify, Accelerate Supply-Chain Financing
May 10 2022 - 9:00AM
Business Wire
Integrated solution will unlock valuable
working capital while helping to speed transactions and reduce
borrowing costs
U.S. Bank announced today that it 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.
About U.S. Bank
U.S. Bancorp, with approximately 70,000 employees and $587
billion in assets as of March 31, 2022, is the parent company of
U.S. Bank National Association. The Minneapolis-based company
serves millions of customers locally, nationally and globally
through a diversified mix of businesses: Consumer and Business
Banking; Payment Services; Corporate & Commercial Banking; and
Wealth Management and Investment Services. The company has been
recognized for its approach to digital innovation, social
responsibility, and customer service, including being named one of
the 2022 World’s Most Ethical Companies and Fortune’s most admired
superregional bank. Learn more at usbank.com/about.
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version on businesswire.com: https://www.businesswire.com/news/home/20220510005368/en/
Todd Deutsch, U.S. Bank Public Affairs & Communications
todd.deutsch@usbank.com | 612.303.4148
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