An Orem-based company is partnering with Mulligan Funding to bring relief to supply chain businesses in its network experiencing hardships as a results of the coronavirus pandemic.
Avetta helps organizations address the need for risk management in their supply chain. Using Avetta’s resources, clients can onboard all contractors and suppliers through a software platform, which also captures data and information to mitigate potential risk.
The network currently includes about 450 hiring clients and over 100,000 contractors and suppliers who provide services to those clients.
The company has set out on a goal to drive value to supply chains, most of which are small- to medium-sized businesses. Along the same lines, Avetta launched a strategic partnership program aimed at benefitting the small businesses in its own network.
With small businesses struggling during the COVID-19 pandemic, Doug Fraley set out to find a partner that could help those small businesses in their time of need.
Mulligan fit that need and those businesses that are members of the Avetta network can get preferred terms and access to the capital they need as a result of the partnership.
“As far as Mulligan is concerned, they are one of the largest, non-bank lending institutions in the nation,” Fraley said. “It’s critical to them, and most of us, that we specify non-bank because the banking industry is making it very difficult for people to get capital from banks.”
Many small businesses are not able to access the capital needed unless it is done through Avetta and Mulligan, and Fraley added Avetta is happy to provide this advantage to customers on their network.
The urgency of the partnership was another key point, as Fraley stated Avetta wanted to see smaller businesses stay on their feet. Avetta administrators went out and gauged the interest of the small businesses. Once the need and interest was established, the efforts began.
“Once that was identified, Mulligan was high on the target list,” Fraley said. “They moved quickly. They’re a private company, so they move as quickly as you can move. They make decisions quickly. I worked with the executive vice president of the company, and it was a matter of days — not weeks — to get the contract signed and move forward with them.”
For most of the contractors in Avetta’s network, they already have contracts with large companies, and in many cases, the contract work has slowed as a result of the COVID-19 pandemic.
In some cases, the COVID-19 pandemic has impacted these business’ ability to bring in money, as well.
“During this time of the economic downturn, it gives them the opportunity to get the capital needed to continue to fund operations until they see that their contracts are increasing and things are not delayed anymore,” said Richard Parke, Senior Vice President of Global Supplier Services.
With contracts being delayed or even canceled, there is little-to-no income for these supply chain businesses.
They are looking to cut costs, and often times, they start with laying off employees. When contracts begin to roll in again, these businesses are going to have to scramble to gather the number of employees needed.
This funding partnership stops this problem early.
“The paycheck protection program was something that the federal government put out, which was helpful, but it hasn’t gone far enough, and it hasn’t lasted long enough,” Parke said.
Parke said Avetta’s only regret was that it did not do it earlier.
As the COVID-19 pandemic has continued on through the year, businesses are beginning to face more hurdles as the U.S. has seen a resurgence of COVID-19 cases. Some states are beginning to go back into mandatory shutdowns.
For many, the thought that they could see the light at the end of the tunnel changed rapidly over the last couple of months.
“It’s huge,” Fraley said of the importance of the partnership. “The faster we can get money into the people’s hands so they can stay afloat, the better off everybody is.”
Quick action is important for supply chain members of the Avetta network who are hoping to stay in business through the pandemic and on to more projects going forward.
