Payables Finance (also known as Approved Payables Finance, Reverse Factoring, Confirming, Supplier Payments, Trade Payables Management, Buyer-Led Supply Chain Finance, Supplier Finance or Vendor Pre-Pay)

It is provided through a buyer-led programme within which sellers in the buyer’s supply chain are able to 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 owed by the buyer until its due date. In all cases, the invoices have been approved for payment by the buyer.