Helps Anchors/Buyers extend payment terms while enabling early payments to suppliers.
Understanding Payable Finance
Payable Finance is a supply chain financing solution that allows buyers to extend payment terms of the supplier/vendor or allows early payment to the suppliers/vendor on accepted invoices. This program is structured with the buyer for its suppliers’/vendors’ network, where the buyer is the borrower and is bound to pay on the due date. Payable Finance improves the Buyer’s Working Capital by optimizing cash outflows, while providing suppliers/vendors with immediate liquidity at a lower cost than traditional borrowing. This enhances trade and business relationships, resulting in higher turnover and profitability for both parties.
Features
Buyers receive pre-approved credit limits for seamless financing.
Invoice Acceptance by Buyer for goods/services received.
Flexible Buyer Repayment on the due date, aligning with their cash flow cycles.
Invoices cleared on
FIFO basis, ensuring
systematic repayment.
Buyers receive pre-approved credit limits for seamless financing.
Invoice acceptance by buyer for goods/services received.
Flexible buyer repayment on the due date, aligning with their cash flow cycles.
Invoices cleared on FIFO basis, ensuring systematic repayment.
Benefits
Unlock the Benefits of Payable Finance
Benefits for Buyer
Augments Working Capital
Strengthens relationship with supplier/vendor with enhanced loyalty
Enables and improves cash on Balance Sheet
Improves Days Payable Outstanding and financial ratios