We’re fluent in startup finance. Now you can be too.

Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.

Oops! Something went wrong while submitting the form.
Payables financing

What is payables financing?

Payables financing, also known as supplier finance or reverse factoring, is a financial solution that allows businesses to extend their payment terms with suppliers while providing suppliers with the option to get paid early. It can be a valuable cash flow management tool for businesses.

In a payables financing arrangement, a financial institution pays the supplier invoices on behalf of the buying company, allowing the company to defer payment until a later date. Meanwhile, the supplier has the option to receive immediate payment from the financial institution for a fee. This setup can benefit both parties: it improves the buyer's cash flow by extending payment terms, and it reduces the supplier's risk of late payment and improves their cash conversion cycle.

Need help with other finance or startup questions?

Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.

We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.

See what Pilot can do for you

Get the peace of mind that comes from partnering with our experienced finance team.

Oops! Something went wrong while submitting the form.