Collaborating to improve working capital access for its network of small suppliers, Walmart is teaming with Citi, bringing the Bridge built by Citi lending platform to Walmart’s roughly 10,000 U.S. suppliers that fall into the small to midsize business (SMB) range, offering loans of up to $10 million.
Positioned by Walmart as part of its Supplier Inclusion initiative, the Bridge built by Citi platform of more than 70 lenders was introduced in 2021 as a pilot with 18 banks and is growing to a national offering. There is also a customized portal for Walmart’s SMB suppliers.
“By leveraging the platform, our suppliers can have better access to the funding they need to expand their operations to reach and surpass their goals. Greater access to capital will help our suppliers continue to provide the products that our customers are looking for,” Jason Fremstad, senior vice president of supplier development at Walmart, said in the statement.
According to that Tuesday (Feb. 28) press release, using a single loan request form, “Walmart suppliers can interact with a broad group of lenders located across the United States. Once a request is submitted, the platform seamlessly connects suppliers with multiple potential lenders that can evaluate their requests. This provides for a more efficient loan process for both the suppliers and lenders and empowers suppliers by offering them greater choice, convenience, and access to capital.”
Lenders benefit, too, as Citi said it provides them “with the potential to expand their reach beyond their immediate local market and diversify their lending businesses.”
The announcement noted that working capital loans, commercial mortgages “and other pre-shipment financing loans are among the potential loans extended by some of the lenders on the platform. Walmart has programs that help with post-shipment financing, but Bridge built by Citi has the potential to expand options available to qualifying suppliers.”
Financial inclusion is a core part of the Bridge built by Citi’s linkup with Walmart. According to the statement, in readying for the rollout to Walmart’s supplier network, “Citi focused on increasing the number of Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs) on the platform.”
Among the group of over 70 lenders now on the platform, Citi said more than 20 are MDIs and four are women-owned institutions. “In addition, 15 of the 20 Black-owned banks in the U.S. are lenders on the platform. Citi and Walmart are proud to help introduce suppliers to financial institutions that are committed to serving their communities and promoting racial and gender equity,” it said.