Payables finance

Supply chain finance.

A buyer-led programme in which the suppliers can receive early discounted value for amounts receivable from the buyer.

The buyer would typically be a stronger credit than the supplier, and the financing cost would be aligned with the buyer's lower cost of financing.

The payable continues to be due by the buyer until its due date.

Payables finance is sometimes known as 'reverse factoring'.

See also

• Credit
• Factoring
• Finance
• Forfaiting
• Invoice discounting
• Payables
• Receivables finance
• Supply chain finance