Deloitte
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Chapter 7 — Common Issues Related to Cash Flows

7.13 Supplier Finance Programs

7.13 Supplier Finance Programs

An entity may work with a bank or other intermediary to arrange a supplier finance program (also referred to as structured trade payables, reverse factoring, vendor payable, supply-chain financing, and extended vendor payables programs). Under the terms of the program, the intermediary typically pays the amount owed to an entity’s supplier of goods or services before the due date of the related supplier (trade) payable. Then, the entity settles with the intermediary on a later date.