Approved Payables Finance

Earlier payments and happy trading partners go hand in hand

Approved Payables Finance

Earlier payments and happy trading partners go hand in hand

Optimising your cash flow

Receiving the funds quickly optimises the supplier’s cash flow.

Good trading relationship

The relationship between the buyer and the supplier is strengthened.

Improved liquidity planning

The greater transparency means the supplier can improve their liquidity planning.

Earlier payment

Approved Payables Finance means suppliers’ invoices to their customers are paid earlier. The buyer irrevocably accepts the invoices for payment, and arranges for a financial institution to buy the invoices and pay them early, without seeking recourse from the supplier. On de due date of the invoices, the buyer pays the amount due to the financial institution.

Benefits for suppliers

  • Flexible source of additional, timely funding (liquidity)
  • Reduction in debt and outstanding trade receivables (if these have not been sold)
  • Faster collection of trade receivables on better finance terms
  • Cash flow optimisation thanks to faster receipt of funds
  • Improved liquidity planning thanks to greater transparency
  • No impact on existing credit lines

Benefits for buyers

  • Stronger relationship with suppliers
  • Standardisation of payment terms to suppliers and optimisation of working capital 

More information

If you are a supplier who would like to receive payments earlier, or a buyer looking to strengthen your trading relationship, contact your KBC relationship manager; they will be happy to help you with Approved Payables Finance.

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