Battery recycler Ecobat has tapped LSQ for supply chain finance solutions.
This collaboration has enabled Ecobat to bolster supplier health and generate working capital, the companies said in a Tuesday (May 21) press release.
“Our collaboration with LSQ has been instrumental in transforming our vendor relations and strengthening our financial position,” Carter Johnson, senior manager of procurement at Ecobat, said in the release. “Through innovative strategies and early payment options, LSQ has played a crucial role in safeguarding the health of our suppliers and driving sustainable growth.”
For Ecobat, the supply chain finance program has provided flexibility to its suppliers by giving them the option to get paid within one day for their invoices, according to the release.
The program has also generated working capital for Ecobat and provided cost savings via LSQ’s payments automation and consolidation, the release said.
In addition, the LSQ FastTrack platform protects sensitive financial data, per 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 the release. “By leveraging our expertise in working capital solutions, we feel we’ve empowered Ecobat to achieve remarkable results in supplier relations and financial operations.”
In the current economic climate, with the cost of capital so high, working capital is increasingly in focus both because it is the lifeblood of companies’ daily operations and because it is part of longer-term strategic maneuvering, PYMNTS reported in September.
Payment delays have been on the rise across many industries, according to the PYMNTS Intelligence and Billtrust collaboration, “Can Automating Working Capital Insulate Businesses From an Economic Downturn?”
The report found that the energy and construction sectors, for example, have an average payment delay of 77 days.
In another recent move, LSQ said in September 2023 that it partnered with Randstad Sourceright to offer an early payment solution for staffing suppliers.
Aimed at addressing the increasing trend of longer payment terms across various industries, this partnership provides suppliers with access to affordable funding and eliminates cash flow concerns, the companies said at the time.