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 US
That funding could be used to boost growth, add more employees, invest in innovation or make a “cash cushion for leaner times.”
HSBC and Walmart already had a program going, which pegs a supplier’s financing rate to the sustainability standards put in place by Walmart.
The Walmart suppliers who have shown progress in sustainability credentials and those who have helped Walmart’s initiative to cut down on reducing one billion metric tons of greenhouse gases from their global value chain by 2030 will be able to access improved HSBC financing.
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“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,” said Priyamvada Singh, head of North America Global Trade and Receivables Finance Product at HSBC. “It’s always great to team up with clients who share our commitments, and we look forward to continuing this journey with Walmart.”
C2FO has also recently partnered with Albertsons to give diverse suppliers access to early payments.
Related: Albertsons, C2FO Team On Diverse Supplier Payment Program
While supplier diversity issues have long held sway in the grocery world, Albertsons is part of a new collective working to fight diversity problems. Jonathan Mayes, senior vice president and chief diversity and inclusion officer at Albertsons Companies, said the idea was to allow diverse suppliers, which have often been smaller businesses, to get more access to capital to help them grow.
“Supplier diversity is a proven way to increase the financial performance of your organization, attract top talent, and optimize innovation,” Mayes said. “In addition to being a moral imperative, it helps ensure that a retailer’s product assortment is relevant to a broad customer base.”
