Create a Payables Extension Product
Financed Payables Extension is a Buyer-led financing - the supplier's invoices are paid early/on time and the Buyer receives a loan to extend its payment terms beyond the original maturity date.
It is sometimes called:
Buyer Payment Extension
Balance Sheet Payables Extension
Off-balance sheet payables financing
Buyer-triggered liquidity facility
How it works
Supplier ships goods and expects to be paid at normal terms (e.g., 30 days).
Financier pays the supplier on time (or the buyer pays the supplier normally).
Buyer and financier agree that the buyer repays the financier later (e.g., 120 days).
Supplier may or may not know about the financier.
Navigate to the Product Groups Tab
Go to the Products section -> Product Groups
Click on Add New Group button
Product Group
Name | Unique and recognisable for your Team |
Type | Loan |
Anchor | Payer |
Instrument | Invoice |
Product Groups work as your product templates. Once you set up a specific Product, it can be used for multiple programmes and clients.
Product Structure
Product Structures define the workflows of your products. They are specified after the product group, as the structure and workflows within it directly influence the product you select.
Similarly to Product Groups they work as templates and can be assigned to multiple clients/ Deals.
Name | Payables Extension - Undisclosed to seller |
Product Group | Choose the Group you have just created in the previous step: Payables Extension |
Recourse | No |
Silent/Undisclosed | Typically yes, but can also be disclosed |
Workflow settings
Instrument Upload/ Submission by | Usually the buyer |
Payer approval required | Typically, yes |
Repayment by | Payer |
Repayment Reconciliation By | Admin or Deal Manager (Funder) |
Finance requested by | Payer, but can be automated |