Okuzeka
Finance & Banking vocabulary · Trade Finance

Payables finance

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, payables finance means: Buyer-led financing allowing suppliers to receive early payment on invoices approved by the buyer.

In Turkish: borçlu onaylı tedarikçi finansmanı

How it is used

Often called reverse factoring; distinguish the buyer-approved programme from supplier-led factoring.

Example sentences

  1. The supplier received early cash through the buyer's payables finance programme.

    The buyer's invoice approval supports the financing offer.

  2. The buyer paid the finance provider at maturity under the payables finance arrangement.

    Early supplier payment and later buyer payment form separate steps.

Common collocations

  • payables finance programme
  • buyer-led payables finance
  • factoringA form of financing in which a company sells its unpaid invoices to a factoring company or bank at a discount and receives cash before its customers pay.
  • trade financeBanking products that help importers and exporters pay and get paid safely, and that finance goods while they are produced, shipped or sold.

More terms: Trade Finance

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This page explains English vocabulary for learners. It is not financial advice.