Supporting Minority-Owned Suppliers with Invoice Factoring
Supplier diversity program support with AR Factoring
The Benefits of Combining Invoice Factoring, Inclusive Procurement, and a Supplier Diversity Program
Working with suppliers is a foundational pillar of your large business or government organization. However, the importance of your SME suppliers doesn’t have to end there.
In a world where minority-owned businesses are often met with hurdles through their paths, inclusive procurement is a creative way to support the historically marginalized groups in your community. Even with slow-paying customers, inclusive procurement via accounts receivable factoring helps both buyers and sellers of goods and services.
This idea is based on the belief that taking care to support diversity and inclusion benefits every aspect of a community and improves the lives of everyone involved. With inclusive procurement, you and your business have the power to make great changes in your communities. Invoice factoring is here to support you in making this change.
The Societal Gain from Supplier Diversity Programs
The Harvard Business Review has a very good article on why you need a supplier diversity program and how this program helps all communities. It fits together with our mission to fund you as a diverse supplier and all diversity owned business firms.
In this article, we will explore the meaning of a supplier diversity program through inclusive procurement, how it’s an important initiative for your business, and how invoice factoring can assist you. We want to help bridge the wealth gap with funding throughout the United States for diverse-owned businesses.
Read how Bankers Factoring supports women-owned businesses, black-owned businesses, and veteran-owned businesses through supplier diversity programs for United States Federal and individual state contracts. We understand disenfranchised business enterprises and their funding needs. Best business practices throughout the supply chain demand inclusivity with diverse businesses.
What is Inclusive Procurement, and Why Does it Matter?
Inclusive procurement is the process of diversifying a business’s supply chain by seeking out and working with suppliers that are owned by members of historically marginalized groups. Marginalized groups meaning women, veterans, Latinos, and members of the LGBTQ+ community, to further social and economic development. A supplier diversity program bridges that gap by building entrepreneurship.
Inclusive procurement is a strategy that businesses owned by majority and minority groups alike can implement. Everyone can benefit from diversifying supply chains and increased diversity, whether your business is minority-owned adjust struggling for working capital. AR factoring is a great starting point for a supplier diversity program or SDP to widen your supply base in the community.
Why choose suppliers from underrepresented backgrounds? It’s all about boosting the economy, making supply chains stronger, helping the environment, promoting diversity, and supporting society. When you work with a diverse group of suppliers, you’re helping create and maintain jobs, promoting local spending, and giving opportunities to minority-owned businesses, which also benefits the community.
Read more about the power of inclusive procurement at jobstomoveamerica.org and improving procurement practices with supplier diversity efforts.
How Does Inclusive Procurement Benefit Your Business?
We live in a diverse world, and inclusive procurement allows this real-world truth to become a business truth as well. When you have a mix of suppliers from different backgrounds, your business can better represent your local community and the people you sell to. Inclusive procurement, at its best, can also save you money, keep you steady in tough times, spark creativity, help with finances, and make things run smoother.
See how invoice factoring provides benefits and accessibility to immigrant-owned businesses while jump-starting supplier diversity initiatives in communities needing help. Bankers Factoring is dedicated to fostering both local and federal supplier diversity programs and the minority owned business enterprises they want to buy goods and services from.
What Inclusive Procurement Brings to the Table.
- Creating new perspectives
Diverse perspectives are proven to bring high value to business. Different backgrounds coming together create higher levels of creativity and innovation. This leads to a strong potential for increased problem-solving and fresh ideas, improving product quality and customer satisfaction. THE CEO of an MBE looks at the world differently. This is a second-level plus to a supplier diversity program.
- Reducing risks and costs
When you diversify your supplier base, you are broadening your pool of sources and helping groups with tough credit histories. This allows your business to reduce dependence on suppliers. That way, in the event of a potential supply chain disruption, any potential damage is mitigated.
Also, learn why factoring companies verify invoices protects minority and disenfranchised businesses with best-in-class procurement practices for your SDP.
- Boosting social reputation
By working with diverse suppliers, you are not just talking about – but proving your support for your local community. Thus, enhancing your image and showing that you are committed to social development and environmental impact.
Work with our Spanish-speaking account executives and learn about Latino-owned business factoring.
What is Invoice Factoring, and How Does it Work?
Reliable, consistent cash flow is crucial to the financial health of any given business. However, small and medium-sized businesses don’t have access to the kind of cash flow big businesses often do. They end up being left waiting for payment on invoices with 20, 30, or even 90-day payment terms. And these long terms can be detrimental. Your business needs working capital now, rather than later.
Enter invoice factoring: a creative, smart financial tool that allows you to sell your unpaid invoices for an immediate cash advance. Invoice factoring allows you to skip the wait and gain immediate access to crucial working capital.
Invoice Factoring and SDP
Keep yourself informed with our comprehensive guide to factoring invoices. Learn about invoice factoring vs invoice financing.
Once your business has completed a transaction and subsequently created an invoice, you can now sell this invoice to an invoice factoring company like Bankers Factoring. We will provide you with an immediate cash advance of up to 80-93%, providing a quick injection of needed working capital. Our approval process is simple and quick, with little documentation needed. And after approval, we will provide you with funding on the same day.
Got more questions about invoice factoring? See our invoice factoring FAQ and how it fits in with a supplier diversity program or SDP.
When small and medium-sized businesses or MBE don’t have access to the kind of cash flow from a loan or line of credit big businesses do, invoice factoring levels the playing field. It deepens the opportunities for growth and success for these smaller businesses minimizing any working capital issue without giving up equity.
How Do Invoice Factoring and Inclusive Procurement Work Together?
Inclusive procurement is a great tool, able to exist on its own. However, when put together with invoice factoring, they complement each other perfectly. Additionally, the benefits of inclusive procurement can grow even further. Your vendors don’t qualify for a traditional bank loan.
Moreover, it is a proven method to increase your own business cash flow. This increased cash flow from A/R factoring will allow you to support your diverse suppliers even more. Moreover, suppliers run by historically underrepresented groups will often have higher levels of vulnerability to economic problems.
So with invoice factoring, you are supporting and increasing the cash flow of your business itself. This helps your business make sure you pay your suppliers on time, which helps them run their business smoothly.
Learn about our low factoring rates with our article factoring rates explained.
An increase in cash flow for you is an increase in cash flow for your suppliers. It also means that increased stability for you is an increase in stability for them. With invoice factoring, you can support the benefits that inclusive procurement provides for your community even more.
It can also allow you to increase your networking opportunities. As with more cash on hand, you have the enhanced capability to reach out to potential new sources with inclusive suppliers. This will allow you to connect with diverse suppliers who can match your business needs.
Also, understand how to talk to your customers about factoring.
Working Capital Opportunities for Minority-Owned Businesses
Invoice factoring can create and support further working capital opportunities for businesses owned by historically underrepresented groups on both ends of the deal, not just on the supplier side.
Historically marginalized groups face more financial challenges in business, even though they are vital today. With issues like bruised personal credit and little time in business that cause many minority-owned businesses to be not yet bankable, these businesses can often find trouble securing funding.
However, invoice factoring provides the answer to these funding issues. The process for approval is accessible, and the roadblocks that prevent bank loans become irrelevant. Businesses with credit issues who find themselves turned down for bank loans need not stress further and can rest assured knowing the solution is in invoice factoring.
Please read our article business funding for minority-owned companies.
See how Bankers Factoring supports start-ups and small businesses as a building block to solid procurement strategies.
With our minority business funding programs, Bankers Factoring is here to support minority-owned businesses in need of critical working capital. With our two decades of experience, we care about your business. Our award-winning services make sure you’re well cared for.
Learn more about the benefits of working with Bankers Factoring and how our funding leads to job creation as part of a procurement policy.
Understanding The Benefits of Inclusive Procurement
The meaning of inclusive procurement, how it incites positive change in your community, and how invoice factoring supports this initiative: with this new information, there is nothing stopping you from reaping the full benefits of both invoice factoring and inclusive procurement.
Invoice factoring involves your marginalized credit score vendors in wealth creation. Large companies, governments, Bankers Factoring, and minority vendors can all create a winning situation.