LSQ and Randstad Sourceright Partner on Early-Payment Solution

LSQ, a provider of working capital finance and payments solutions, has partnered with Randstad Sourceright to offer an early-payment solution for staffing suppliers.

This partnership aims to address the increasing trend of longer payment terms across various industries by providing suppliers with access to affordable funding and eliminating cash flow concerns, the companies said in a Tuesday (Sept. 19) press release.

LSQ Chief Operating Officer Richard Lee said in the release: “By partnering with Randstad, we are created a technology-enabled working capital solution that makes it easy for suppliers to gain access to affordable funding the next day after invoices are approved. We have seen staffing firms using Qwil be able to scale by growing existing contracts or taking on new clients without having to worry about cash flow because they have payment certainty and know cash flow isn’t going to be an issue.”

Under the partnership, staffing suppliers enrolled with Qwil, LSQ’s embedded finance platform, will continue to work with Randstad as usual but will be paid by Qwil.

The early-payment program offers flexibility and ease of use, allowing suppliers to accelerate payments on an invoice-by-invoice basis, the release said. Suppliers can choose to take all, some or none of the early funding available until the original contract due date.

Enrollment with Qwil is free for all suppliers in a Randstad Sourceright program, per the release.

Jennifer Aubin-Anthony, chief financial officer of Randstad Sourceright North America, said in the release that the partnership and agile payment solution will enhance the capabilities of the company’s suppliers and smooth the way for its clients to transact and get the services they need.

“It enables us to adeptly meet our clients’ needs, provide a wider mix of suppliers, and support payment flexibility and transparency,” Aubin-Anthony said. “These significant advantages around payments benefit everyone involved, with minimal upfront costs and effort required.”

PYMNTS Intelligence has found that among Growth Corporates using working capital solutions, top performers tend to use it strategically — to cover planned cash flow gaps related to predictable business cycles or to invest in business growth.

Growth Corporates organizations generally report annual revenues between $50 million and $1 billion and can fall through the cracks between solutions tailored for small businesses or enterprises.

Seventy percent of Growth Corporates who used working capital saw better business metrics as a result, according to the “2023-2024 Growth Corporates Working Capital Index,” a PYMNTS and Visa collaboration.