HSBC Bank USA announced today that it has joined a Walmart initiative aimed at making access to working capital for diverse and minority suppliers affordable, transparent and more equitable. HSBC will provide funding capabilities or the program that provides faster payments at improved rates for the suppliers, enabling them to apply the capital to growth initiatives and improved business resiliency.
Walmart announced the launch of the program in April 2021, in partnership with financial technology company CF20. Under the program, qualified diverse or minority-owned suppliers select invoices they would like to request early payments on. At the time, Walmart explained that suppliers had told the company that gaining access to capital is the biggest challenge to achieving growth.
At launch, Walmart stated that it would fund the initiative internally at first, aiming to team up over time with banks to provide additional funding capabilities for the program. HSBC Bank USA is the first banking collaborator for the program.
Priyamvada Singh, Head of North America Global Trade and Receivables Finance Product at HSBC, said:
“Minority-owned and diverse businesses face significant barriers to access capital so we are excited to help these businesses receive the funding they need to prosper. It’s always great to team up with clients who share our commitments, and we look forward to continuing this journey with Walmart.”