Michigan Minority Supplier Development Council teams up to improve working capital

LSQ, a provider of technology-driven working capital financing and payment solutions, has partnered with the Michigan Minority Supplier Development Council (MMSDC) in Detroit to provide working capital assistance to minority-owned businesses in a myriad of industries across the state.

“Lack of access to affordable working capital continues to be a barrier to growth for various vendors,” says Vikas Shah, CRO at LSQ. “Through our new partnership with MMSDC, we are working with the board and large enterprise buyers to meet working capital needs through supply chain finance programs.”

The MMSDC is a non-profit organization committed to stimulating economic growth in minority communities. Supply Chain Finance (SCF) programs are sponsored by buyers and give suppliers the opportunity to receive prepayment on their invoices.

Buyers can deploy their own balance sheet and use LSQ’s prepayment platform or can also benefit from increased working capital as prepayments are funded by LSQ’s SCF program.

Through this partnership, LSQ is offering minority-owned small and medium-sized businesses credit rates normally reserved for Tier 1 providers. Small and medium-sized businesses have traditionally faced higher rates or been excluded from SCF programs.

“Unfortunately, too often we see the economic disadvantages of minority business enterprises (MBEs) in the state,” says Al Louis, director of MBEs and certification at MMSDC. “These companies are ready to fill important gaps in the supply chains of major manufacturers, but simply do not have access to the capital to do so.

“By working with LSQ and our large member companies through this partnership, we can make a huge difference in putting businesses in Michigan owned by members of diverse communities on an equal footing.”

For MBEs whose buyers do not offer SCF programs, LSQ offers a variety of accounts receivable and inventory financing options.

The MMSDC pursues its mission by facilitating more than $36 billion annually in economic production between corporations and Certified Minority Business Enterprises. Founded in 1977, the MMSDC certifies minority-owned businesses, builds capacity, and facilitates inclusive sourcing opportunities.