Definition
Payables financing is a form of financing where businesses receive early payment for outstanding accounts payable, typically through a factoring or reverse factoring arrangement.
Related Services
Financial services, factoring companies, and invoice management help businesses manage cash flow through payables financing.
Problem and Application
While payables financing helps manage cash flow, it may come with fees and could be more expensive than traditional financing options.
Conclusion
Payables financing can provide short-term liquidity, but businesses should carefully assess the costs and benefits to ensure it�s a viable financial solution.
