Payment Extension - Early Advantage Limited

What is Payment Extension ?

Payment extension is a supply chain finance solution that allows a buyer to artificially extend their payment terms beyond the original maturity date of the invoice, subject to funder approval. It typically works similar to a standard payables finance programme. At extended maturity, the buyer repays the funder who provided suppliers with finance.

The key difference from a standard payable finance programme lies within the buyer paying the funder an additional interest fee for financing their payment term extension. Payment extension can be paired with Dynamic Discounting to take advantage of higher early payment discounts offered by suppliers or be entirely buyer driven with no changes to suppliers payment terms.

What are the benefits?

Buyers benefits
  • Complete Control of your finances
  • Improve payment terms
  • Increase Days Payable Outstanding (DPO)
  • Extend payment terms and preserve Liquidity
  • Zero cost to implement program
  • Competitive interest rates due to multi funder nature of the program
Funders benefits
  • Generate fees as interest for payment extension
  • Risk supported by large corporate buyers
  • Finance irrevocable payment undertaking
  • Access to a large network of corporates actively seeking payment extension
  • Quick return on investment (typical extensions are 30 – 60 days)