The offering is meant for companies of all sizes, and it allows buyers to not only optimize their working capital but also give suppliers on-demand invoice funding options.
“This new offering builds upon capabilities LSQ developed over two decades of funding invoices for smaller suppliers,” said Dan Ambrico, CEO of LSQ. “We bridge the payment terms that buyers demand of their suppliers and deeply understand the capital crunch suppliers otherwise experience. Existing supply chain finance programs address the mega suppliers and buyers who already have access to capital. LSQ FastTrack makes supply chain finance available to the unserved mid-market and smaller suppliers.”
With the platform, suppliers can ask for funding on open invoices, and LSQ will pay the supplier, which allows the customer to keep the same terms for capital without affecting the supplier.
LSQ said the experience for suppliers is intuitive, straightforward and transparent.
“With today’s announcement, LSQ makes it easy for buyers to implement a customized supply chain finance program,” Ambrico said. “We structure the program, handle supplier onboarding and provide the capital — all within weeks. We don’t require changes to invoice submission, approval or payment processes, and we can provide a custom supplier portal that integrates with any billing platform.”
The company has funded over $25 billion in invoices over the past 20 years.
“Insights gained through that experience have enabled LSQ to deploy technologies that make it possible to quickly review, evaluate, approve and fund customers, providing on-demand access to capital,” the release said.
In 2015, then LSQ CEO Max Eliscu spoke with PYMNTS about how financing was a helpful lifeline to small business.
“I think there’s one primary reason: The merchant cash advance and daily direct debit industries have really few sustainable competitive advantages,” Eliscu said. “Entrants in those markets are now competing on price and the lowest cost source of distribution. Essentially, the industries are already mature. Technology is accelerating the life cycle. As a result, the smartest of the new entrants are seeking either an easier path to differentiation and sustainability or targeting industries not so heavily trafficked. Receivables financing is one of them.”