Supplier finance program
In accounting, supplier finance program means an arrangement in which a financial institution pays a buyer's approved invoices to suppliers early and the buyer pays the institution later. The buyer must disclose the key terms and the obligations outstanding under it.
Authority: ASC 405-50; ASU 2022-04 (opens in a new tab). Sources
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- dynamic discounting (the buyer pays from its own cash)
- factoring (the supplier sells its receivables for cash)
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Payables
Defined in Lexicon. This page is generated from that document, so the two can't disagree.