U.S. Bank partners with LiquidX to augment supply-chain financing

This collaboration will pair the bank’s 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 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.

This partnership between US Bank and LiquidX augments existing supply-chain finance solutions currently available to U.S. Bank clients. The Receivables Purchase Programme 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 Programme helps buyers pay suppliers early, reduces payment processing costs, and gives suppliers faster and more predictable access to cash.

As supply-chain decisions become strategically critical for businesses, according to the press release, 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 initiatives by providing financial incentives and greater access to working capital for diverse suppliers.