---
title: "Supplier finance program"
description: "Supplier finance program — 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."
canonical: "https://lopifi.com/glossary/supplier-finance-program"
---

# Supplier finance program

> Supplier finance program — 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.

Source: https://lopifi.com/glossary/supplier-finance-program
Part of: Lopifi — Planned: US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

---

**What is 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.

## Words this system refuses for it

- dynamic discounting (the buyer pays from its own cash)
- factoring (the supplier sells its receivables for cash)

- **Category:** Payables
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/lexicon)