Demica’s Payment Extension solution is driven by corporate treasury & procurement teams who negotiate an increase in the price of goods sold along with an extension of payment terms with their suppliers. The supplier is able to take payment of the invoice at maturity, take payment in line with historic invoice terms, or request immediate payment at a discount from the funder. Demica’s solution can be structured to meet the buyer’s needs, with the highly customisable solution able to manage gross-ups and then track invoices from pre-approval through to payment.
Payment Extension programmes can be rapidly rolled out as both the buyer’s and suppliers’ working capital is improved without any detriment to the other party.
The structure is ideally suited to non-investment grade buyers with large, highly rated, suppliers, where supply chain finance may not be feasible.
Funding can be sourced either from a client’s relationship banks or, if diversification is helpful, from Demica’s Investor Partners.
Demica has extensive experience in managing payment extension programmes, with our platform providing a valuable bank agnostic solution that works seamlessly with other forms of working capital finance such as trade receivable securitisation or invoice discounting.
With payment extensions agreed with the Suppliers, Demica’s solution automates the discounting and payment of invoices in line with the suppliers' preferences, while the buyer ensures that the payables financing remains off-balance sheet.
“Demica worked with our core group of funders to implement a Payment Extension solution. Demica’s understanding of our requirements enabled us capture early payment discounts while swiftly onboarding and extending terms with our core suppliers”
“Demica have built a highly robust and reliable platform that supports the most complex of supply chain finance programmes. Demica’s expertise and understanding of our business needs are exactly what we look for in a business partner.”
Director - Working Capital Solutions
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