Asda strengthens supply chain support with Lloyds Bank finance partnership

Asda is strengthening its supply chain thanks to a new partnership with LLoyds Bank which will provide the supermarket’s network of UK suppliers with a source of reliable working capital.

The Supplier Finance programme – which will support a range of suppliers throughout Asda’s supply chain – has come at a time when the grocery sector is facing high inflation and low consumer confidence.

“Our supplier relationships are an essential part of our offering to customers and, as one of the country’s largest grocers, we have a responsibility to support food and drink producers across the UK, and beyond,” said Asda senior director, tax and treasury Stephen Finn.

Asda suppliers will be able to access early funding of up to 100% of the value of their invoices as soon as they are approved, helping to improve cashflow and “build resilience” in the current economic climate.


Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning


The programme will also allow suppliers to leverage Asda’s credit rating and access an off-balance sheet source of working capital.

The additional support will strengthen the supermarket’s supply chain, further bolstering it’s existing initiatives such as Asda Nurture, an incubator scheme that gives innovative small and medium-sized suppliers better access to shelf space instore.

“This new, expanded supplier finance programme we are delivering with Lloyds Bank deepens our support for the businesses we rely on, while helping us to build resilience in our supply chain,” added Finn.

As lead funder, Lloyds Bank will operate the programme through its Open Account Platform, a fully digital solution that lets new suppliers join the programme in 48 hours or less.

“Retail and food and drink are just two sectors that have struggled with delivery delays and liquidity challenges since the start of the pandemic, and now they are facing into a high inflation environment where consumer confidence is low,” said Lloyds Bank managing director and head of corporate trade finance and working capital sales Mansour Davarian.

“Supply chain finance programmes, like the one Asda launched, build resilience, improve cashflow, reduce cost and risk and, with the right technology, offer a seamless, user-friendly experience to all parties involved – all helping British businesses prosper.”

NewsSupermarketsSuppliers

RELATED POSTS

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

Menu

SUBSCRIBE TO OUR NEWSLETTER

Sign up to our daily newsletter to get all the latest grocery news and insights direct to your inbox.

  • This field is for validation purposes and should be left unchanged.