HSBC teams up with Walmart on working capital diversity

On Monday, August 9, HSBC Bank announced a collaboration with Walmart to help make access to working capital more affordable and transparent.

HSBC is working with C2FO to give “diverse and minority suppliers” access to reliable funding sources.

Read more: HSBC is the first bank to join Walmart’s initiative to improve access to working capital for diverse and minority suppliers in the United States

This funding could be used to spur growth, add more employees, invest in innovation, or build a “cash cushion for tougher times.”

HSBC and Walmart already had a program underway, which pegs a supplier’s financing rate to the sustainability standards put in place by Walmart.

Walmart suppliers who have made progress on sustainability and those who have contributed to Walmart’s initiative to reduce greenhouse gases from their global value chain by 1 billion metric tons by 2030 will be able to access enhanced HSBC financing.

“Minority-owned and diverse businesses face significant hurdles in accessing capital, so we are delighted to help these businesses receive the financing they need to thrive,” said Priyamvada Singh, chief product officer of global trade finance and North American receivables at HSBC. “It’s always great to team up with customers who share our commitments, and we look forward to continuing this journey with Walmart. »

C2FO has also recently partnered with Albertsons to provide various vendors with access to advance payments.

Related: Albertsons, C2FO team on Diversified Vendor Payment Program

While supplier diversity issues have long dominated the grocery world, Albertsons is part of a new collective tackling diversity issues. Jonathan Mayes, senior vice president and director of diversity and inclusion at Albertsons Companies, said the idea was to allow various suppliers, who were often small businesses, to have better access to capital to help them grow.

“Supplier diversity is a proven way to increase your organization’s financial performance, attract top talent, and optimize innovation,” Mayes said. “As well as being a moral imperative, this helps ensure that a retailer’s product assortment is relevant to a broad customer base.”