Amounts a company owes to suppliers for goods or services received but not yet paid.
Amounts owed to a company by its customers for goods or services already delivered.
Annual Percentage Rate (APR) expresses a cost or return on an annualized basis, enabling like-for-like comparison regardless of payment timing.
The entity purchasing goods or services and responsible for settling invoices.
Cash Deployed is the amount of buyer liquidity used to pay approved invoices earlier than their due date during a given period.
The movement of money into and out of a business over a specific period.
The effective cost incurred by a financial institution to obtain capital used for lending.
A formal agreement between a lender and borrower that defines the terms under which financing can be accessed.
The risk that a counterparty will fail to meet its payment obligations.
The percentage reduction applied to an invoice amount in exchange for early payment.
An early-payment arrangement where the discount rate varies depending on how early the payment is made relative to the invoice due date. In Wocap, suppliers control the discount. They decide whether to participate and what discount to offer in exchange for receiving payment earlier on approved invoices.
The number of days by which a payment is made earlier than the original due date.
The average number of days a company takes to pay its suppliers.
The date by which an invoice must be paid under the agreed payment terms.
The Euro Short-Term Rate, reflecting the cost of overnight wholesale unsecured borrowing in euros.
The Euro Interbank Offered Rate, used as a benchmark interest rate for euro-denominated lending.
A form of receivables financing where a supplier sells its accounts receivable to a third party at a discount in exchange for immediate cash.
Financing Cost (for Suppliers) refers to the effective cost implied by the discount a supplier offers in exchange for receiving payment earlier than the invoice due date, expressed on a comparable basis (e.g. annualized).
The percentage charged on borrowed funds over a specific period.
The ability of a business to meet short-term financial obligations using available cash or easily convertible assets.
The agreed conditions under which a buyer must pay a supplier, including timing and method.
Prepayment Window is the period during which an approved invoice is available for earlier payment before its due date.
A payables financing arrangement initiated by the buyer, allowing suppliers to receive early payment on approved invoices, with the buyer paying the financier at a later date.
A revolving credit arrangement that allows repeated borrowing and repayment up to a predefined limit.
Return on Investment (ROI) measures the benefit generated relative to the cash deployed, expressed as a percentage over a defined period.
The Secured Overnight Financing Rate, a benchmark interest rate based on overnight U.S. Treasury-backed transactions.
The Sterling Overnight Index Average, a benchmark interest rate for overnight unsecured lending in British pounds.
Static discounting is a payment practice where a fixed discount rate is agreed in advance for early payment of an invoice, regardless of how early the payment is made.
The entity providing goods or services and issuing invoices for payment.
The difference between current assets and current liabilities, representing the funds available for day-to-day operations.
Yield is the return earned by a buyer from paying invoices earlier at a discount, typically expressed as a percentage over a given period or on an annualized basis.