Extended Payment Terms

Extended payment terms refer to allowing buyers to delay payment for goods or services beyond the standard payment period agreed upon with suppliers. Instead of immediate payment, buyers receive additional time to settle accounts, typically in the form of net 30, net 60, or net 90 days. These terms are negotiated between buyers and suppliers and provide buyers with greater flexibility in managing cash flow by deferring payment obligations and preserving liquidity. The extended payment terms agreement is typically between the buyers and an external financier, which allows the buyers to extend their payments for a certain fee. Liquiditas offers this solution through the Reverse Factoring program. To learn more, follow this link.