Supply chain finance (SCF) and technology firm Esker has made an equity investment in partner LSQ, a capital finance and and payments company.
The first phase of the investment is a $5 million promissory note, an announcement from Esker stated Wednesday (April 20).
The announcement added that Esker issued the note “to strengthen LSQ and Esker’s partnership and accelerate the development and commercial expansion of their common supply chain finance solutions.
Moreover, the release continued, “the partners have agreed to potentially increase Esker’s financial involvement in LSQ based on the development of their common business.”
Supply chain finance is increasingly important, the announcement said, and “the ability to optimize cashflow and working capital management across entire business ecosystems will emerge as a truly strategic objective.”
See also: Esker’s New B2B Payments Platform Aims to Improve Cash Flow Mgmt
Esker and LSQ began formally working together in December 2021. An initial benefit to Esker’s customers, according to the company, will be the ability to benefit from LSQ Fastrack, a finance and discounting platform.
“The equity investment will be used to expand the operations of the team, and our commitment to Esker Pay in the supply chain finance space,” Steve Smith, U.S. chief operating officer at Esker, said in a prepared statement. “Esker Pay is central to our growth initiatives for 2022 and beyond.”
Esker said it processes transactions valued at more than $400 billion every year.
“We believe in the opportunity in the area of SCF and want to take advantage of it from an operational and capital standpoint,” Jean-Michel Bérard, Esker’s chief executive, said in a prepared statement.
Esker is headquartered in Lyon, France, and LSQ in Orlando, Florida.
