With diverse and minority-owned businesses declaring their biggest challenge to be earning working capital, Walmart and Sam’s Club are rolling out a program to offer prepayment to various eligible suppliers, including the manufacturers of their private label products. .
The program is a partnership with the C2FO technology platform, which allows store brands and branded suppliers to manually select which invoices they wish to request prepayment on. This decision aims to help make access to working capital affordable, transparent and more equitable, according to a blog post by Scott McCall and Megan Crozier, marketing managers for Walmart US and Sam’s Club, respectively.
Minority-owned or diverse businesses that qualify will be able to access the new program from May 3. The retailer said the prepayment program builds on existing prepayment programs and the new program allows for faster payments from lower rates.
Walmart has said it will fund this program independently from the start, with plans to partner with major global and minority banks to provide additional funding capacity.
Walmart and Sam’s Club have strived to foster diversity within its network of brand and private label suppliers previously through its Supplier Inclusion Program.
Last year, Walmart totaled more than $ 13.1 billion in goods and services from various vendors and committed with the Walmart Foundation to $ 100 million over the next five years for the Walmart.org Center for Racial Equity.