Battery recycler Ecobat turned to LSQ for supply chain finance solutions.
The partnership enables Ecobat to strengthen its supplier health and generate working capital, the companies said in a press release on Tuesday (May 21).
“Working with LSQ has helped us transform our vendor relationships and strengthen our financial position,” said Carter Johnson, senior manager of procurement at Ecobat, in a release. “Through innovative strategies and early payment options, LSQ has played a key role in protecting the health of our suppliers and driving sustainable growth.”
For Ecobat, the supply chain finance program created flexibility for suppliers by giving them the option to get their invoices paid within one day, according to the release.
The program also generated working capital for Ecobat and realized cost savings through LSQ payment automation and consolidation, the release states.
Additionally, the LSQ FastTrack platform protects sensitive financial data, according to the release.
“Our collaboration with Ecobat exemplifies LSQ's commitment to driving financial excellence and fostering mutually beneficial relationships,” Amarish Kapadia, vice president of working capital solutions at LSQ, said in a release. There is,” he said. “We feel that leveraging our expertise in working capital solutions has enabled Ecobat to achieve impressive results in its supplier relationships and financial operations.”
In the current economic climate, where the cost of capital is extremely high, working capital is receiving increasing attention because it is the lifeblood of a company's day-to-day operations and is part of its long-term strategic operations. PYMNTS reported in September.
Late payments are on the rise in many industries, according to a joint study by PYMNTS Intelligence and Billtrust, “Can Working Capital Automation Protect Your Business from an Economic Downturn?”
The report found, for example, that payments are delayed by an average of 77 days in the energy and construction sectors.
In another recent move, LSQ announced that it will partner with Randstad Sourcerite in September 2023 to provide early payment solutions to staffing suppliers.
The partnership, which aims to address the trend of longer payment terms across a variety of industries, will give suppliers access to affordable financing and eliminate cash flow concerns, the companies said at the time. Ta.
