Payables Finance

These solutions allow our customers to extend funding to their suppliers through the discount of their own receivables.

This may enable buyers to extend payment terms on their payables, unlocking working capital for redeployment into other corporate initiatives.


What is Payables Finance?

A payables finance structure will establish a tripartite arrangement between corporate, supplier and funder. The funder will typically contract to purchase the receivable generated by the supplier upon confirmation of the sale to the buyer.

By keeping the relationship between supplier and funder independent and managed through the platform, the payable may be classified for accounting purposes as trade debt as opposed to an on balance sheet finance obligation.

Benefits to the Buyers:

  • Optimises working capital by increasing DPO
  • Strengthens buyer/ supplier relationship
  • Single platform managing multiple funders
  • Advanced web interfaces driving supplier onboarding

Benefits to the Suppliers:

  • Optimises working capital by reducing DSO
  • Provides access to competitively priced funding
  • Flexibility to enable/ disable funding
  • Real time visibility on availability of funds

Supply Chain Finance Structure

How does it work?

Our information request allows us to analyse a corporate’s supplier relationships with reference to existing terms, geographical distribution and currency.

With this information we will generate a “win-win” scenario where payment terms can be extended without additional cost to the suppliers.

Implementation of a payables financing solution will involve establishing data connectivity with the corporate with onboarding of suppliers through our award-winning tools and applications.

We have a wide range of established relationships with funders who can help with your Demica programmes.


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