Supplier Success, which specializes in helping companies build supply chains that support diversity and social goals, has entered a strategic partnership with working capital provider C2FO.
Through the arrangement, announced Tuesday (Aug. 16), C2FO has created a tailored offering called the “Supplier Success Hub,” aimed at helping emerging businesses build strong supply chains and control their cash flows.
Corporations are increasingly “offering differentiated early payment programs to diverse suppliers” as part of their environmental, social and governance (ESG) strategies, per the release. Through the partnership, the companies will work to provide more working capital to minority-owned businesses.
“Diverse businesses face serious working capital constraints that can limit their potential growth or jeopardize their livelihoods,” Louis Green, CEO and founder of Supplier Success, said in the release.
Allison Baker, senior vice president of partnerships at C2FO, noted the program “creates a clear pathway for companies looking to immediately launch specialized working capital programs, unlock accelerated liquidity to diverse-owned suppliers, and increase access for these minority-, women-, LGBTQ+ and disability-owned businesses to low-cost and convenient working capital.”
C2FO stated that in 2021, minority- and women-owned business used the company’s platform to obtain funding at 3.2x the rate of businesses without the special designations. From the start of 2022, the company has helped businesses in the selected categories get $2.5 billion payments faster than would normally occur.
Supplier Success is based in Detroit, Michigan, and is certified minority-owned. Kansas City, Missouri-based C2FO said it works with more than 1 million businesses in 160 countries that account for $10.5 trillion in annual sales.
Other companies have also been working to level the playing field for diverse-owned businesses, with Facebook having launched an early-payment program last year.
See also: Facebook Expands Invoice Fast Track Program To Allow SMBs To Get Paid Right Away
In September 2021, Jason Trimiew, head of global supplier diversity at Facebook, told PYMNTS: “We know the challenges that a lot of these diverse-owned businesses in particular face. And we know that when these businesses are thriving, we can all do a lot better. So, we’re stepping in to help.”
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