Payables Finance

Simply pay your invoices later

With Payables Finance, we pay your supplier invoices on the due date, or even earlier if needed. Your company pays us the amount at a later specified date. This means you benefit from additional liquidity at attractive financing conditions, while also improving your balance sheet figures.

Payables Finance: additional inexpensive liquidity

  • Generate additional liquidity from your supplier liabilities

  • You can improve your balance sheet figures by increasing supplier liabilities

  • Improved planning of cash outflows with longer terms

  • Lower purchasing costs through discounting

  • Attractive financing conditions, especially compared with conventional loans

  • Straightforward processing with an automated online solution

    • Your company uploads the approved supplier invoice data to PostFinance
    • PostFinance pays the supplier invoices for the amount you have specified either right away or on the due date
    • PostFinance sends you a repayment invoice electronically for each repayment date (1 to 360 days following the day on which PostFinance made the payment)
    • Your company pays the invoice amount back to PostFinance on the repayment date, plus interest
    The illustration shows how Payable Finance works. 1. The creditors deliver the goods/service plus invoice to your company (with a 30-day payment term, for instance). 2. Your company sends the invoice information to PostFinance. 3. PostFinance pays the bill to the creditor when due (e.g. after 30 days). 4. Your company pays the invoice amount to PostFinance as per agreement (e.g. after 90 days).
    • Attractive interest rates from 0.5% a year (depending on the credit standing of your company and other factors)
    • Depending on your company’s rating and the structure of the programme, you may also incur hedging costs (e.g. guarantee, joint guarantee, credit insurance) through a third party

    Key requirements for Payables Finance

    • Your company has a satisfactory credit rating
    • Supplier invoices are regularly due
    • Supplier liabilities amount to a financing volume of at least CHF 500,000 (e.g. suppliers liabilities of at least CHF 3 million and a 60-day extension of the payment term)
  • Assumptions

    • Purchasing volume of CHF 24 million a year, turnover of CHF 50 million a year
    • PostFinance extends your term of payment by 60 days

    Results

    • CHF 4 million of additional liquidity
    • A 29-day reduction in the cash-to-cash cycle
    • Overall costs of CHF 80,000 a year (1% interest + 1% hedging costs)
    • Additional discount savings of CHF 48,000 a year. (proportion of supplier invoices with a discount available = 20%, an average discount of 2%, increase in the discount utilization ratio by 40 to 90%)