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Trade Payables Financing

Financing program that enables a company (Buyer) to extend the payment terms of its purchases from key Suppliers, by engaging ADF as payment agent. ADF then pays the Suppliers on behalf of the company in the due date and collects from the company at a later date agreed between them.  The Suppliers do not have to be legally engaged in this type of programs, making them easy and quick to setup.

Ideally suited for companies that source from key suppliers and are looking to extend the payment terms towards them

Benefits for Buyer
  • Extend payment term of purchases from key Supplier/s
  • The facility payment term is defined by the Buyer
  • Fast to implement
  • The facility could be classified as Trade Payables or Trade Financing rather than Financial Debt
Benefits for Suppliers
  • Reduce credit risk due to payment from ADF
  • Timely settlement of receivables leads to more accurate cash forecasts
  • Sales growth potential
  • The Supplier could sponsor the initiative
  • Enhance Buyer relationship
  • Neither legal engagement nor changes to commercial terms are required
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