TRADE PAYABLES FINANCING

PAYMENTS OF ACCOUNTS PAYABLE

It is a mechanism through which a company obtains longer and more attractive terms for the payment to its suppliers. The company negotiates a financing with THE INVESTOR so that the INVESTOR will pay the company’s suppliers on behalf of the company, either at shipment date or at the expiration of the payment terms established in the invoice. As a result,  the INVESTOR extends to the company a greater tenor and longer payment terms for the payment of the account payables.

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BENEFITS

-  Larger installments. THE INVESTOR can extend the payment period agreed on the invoice to the supplier up to 90 additional days.
-  The company could benefit from the discounts for prompt / early payment offered by its suppliers.
-  The disbursement process is simple and user friendly.

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Funds flow – payables financing