POST
MATURITY
FINANCING
EXTEND PAYMENT TERMS
With Post Maturity Financing, a company can extend payment terms for due invoices without having to change existing supply contracts. Suppliers have no disadvantages as a result! Companies have the option of flexibly utilising their own or external funds to pay invoices based on their actual liquidity requirements. Punctual payment to the supplier on the invoice due date is always ensured.
Post Maturity Financing can be used independently or in combination with other Supply Chain Finance solutions. The costs of your working capital optimisation can be financed in this way.
In contrast to other solutions offered on the market, the use of a Bill of Exchange does not extinguish the original liability and create a new one. This is particularly important with regard to IFRS accounting.
THE THREE MOST IMPORTANT ADVANTAGES FOR BUYERS:
Active Working Capital Optimization
Buyer can optimize working capital actively, independently and in line with requirements without having to rely on the supplier’s cooperation.
Ease of set up
Buyer and supplier have only to agree to use Bills of Exchange as alternative payment instrument. No need to renegotiate supply contracts to extend payment terms.
Classification as Trade Debt
The use of a Bill of Exchange as alternative payment instrument avoids the extinction of the payment obligation resulting from the supply contract and hence results as trade debt.
THE THREE MOST IMPORTANT ADVANTAGES FOR SUPPLIERS:
No administrative burden – no disadvantages
If supplier is already registered on the Traxpay Dynamic Financing Platform© no further intervention is needed. If not, only a short and simple framework agreement has to be signed once – done.
Punctual payment
The supplier is always paid punctually on the due date. Either from a financer via the purchase of Bills of Exchange or directly from the buyer.
A more stable business relationship
With the acceptance of Bills of Exchange as alternative payment instrument suppliers enable buyers to benefit from longer payment terms without the need of renegotiating payment terms of the supply contract.
THE THREE MOST IMPORTANT ADVANTAGES FOR BUYERS:
Active Working Capital Optimization
Buyer can optimize working capital actively, independently and in line with requirements without having to rely on the supplier’s cooperation.
Ease of set up
Buyer and supplier have only to agree to use Bills of Exchange as alternative payment instrument. No need to renegotiate supply contracts to extend payment terms.
Classification as Trade Debt
The use of a Bill of Exchange as alternative payment instrument avoids the extinction of the payment obligation resulting from the supply contract and hence results as trade debt.
THE THREE MOST IMPORTANT ADVANTAGES FOR SUPPLIERS:
No administrative burden – no disadvantages
If supplier is already registered on the Traxpay Dynamic Financing Platform© no further intervention is needed. If not, only a short and simple framework agreement has to be signed once – done.
Punctual payment
The supplier is always paid punctually on the due date. Either from a financer via the purchase of Bills of Exchange or directly from the buyer.
A more stable business relationship
With the acceptance of Bills of Exchange as alternative payment instrument suppliers enable buyers to benefit from longer payment terms without the need of renegotiating payment terms of the supply contract.
NUMBERS SPEAK LOUDER THAN 1,000 WORDS
Calculate the specific improvement potential for your company right here. Simple, fast and no obligation. You only need a few figures from your financial report. Your data is not stored by Traxpay and is subject to the German General Data Protection Regulation (GDPR).
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Read moreAny questions?
- Sibel Kücükcolak
- Sales Executive
- +49 69 597 721 535