Payables Finance
Payables Finance is provided through a buyer-led program within which sellers in the buyer’s supply chain may access finance by means of receivables purchase. The technique provides a seller of goods or services with the option of receiving the discounted value of receivables (represented by outstanding invoices) prior to their actual due date and typically at a financing cost aligned with the credit risk of the buyer. The payable continues to be due by the buyer until its due date. Reverse Factoring is a synonym for Payables Finance or as it is sometimes called, Approved Payables Finance.
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