EXTENDED PAYMENT TERMS FINANCING SOLUTIONS

UNLOCK YOUR CASH FROM EXTENDED PAYMENT TERMS

Are longer invoice payment terms from your customers depleting your working capital? Leverage eCapital’s Extended Payment Terms solutions to get paid faster.

Let’s Talk

See how we can help your business

    By opting-in and submitting this form you consent to receive marketing email and text messages (e.g. promotions, product information, industry insights, etc.) from eCapital. See our Privacy Policy for further information.
  • This field is for validation purposes and should be left unchanged.

Let’s Talk

See how we can help your business

    By opting-in and submitting this form you consent to receive marketing email and text messages (e.g. promotions, product information, industry insights, etc.) from eCapital. See our Privacy Policy for further information.
  • This field is for validation purposes and should be left unchanged.

DON’T LET EXTENDED PAYMENT TERMS HOLD YOUR BUSINESS BACK

Uncertain economic times are prompting large enterprises to extend payment terms with their suppliers. By prolonging invoice due dates, companies can maintain more cash on hand to navigate inflation and other economic challenges more securely. However, this creates a significant cash flow burden for suppliers.

If you’re a small to mid-sized supplier, waiting 90 to 120 days, or more, to receive invoice payments can cause severe cash flow shortages. In many cases, this can impact your ability to pay bills, restock inventory, pay staff or invest in growth opportunities. At worst, it could cripple your business.

To make matters worse, many small to mid-sized businesses lack the credit history and other financial requirements needed to secure traditional bank loans. With rising interest rates, you also may be unable to afford loans. Where does that leave your business when customers extend payment terms?

ELIMINATE YOUR CASH FLOW GAPS

Recurring cash flow shortages due to extended payment terms can create several problems for businesses, particularly small and mid-sized ones. Addressing cash flow shortages can yield numerous benefits for businesses, including:

  • Improved financial stability
  • Enhanced supplier relationships
  • Increased growth opportunities
  • Competitive advantage

BOOST WORKING CAPITAL & FINANCIAL FLEXIBILITY

More working capital helps your business fulfill short-term financial needs, maintain strong supplier relationships, and replenish inventory promptly.

More financial flexibility enables swift adaptation to market changes, capturing new opportunities, and investing in innovation or expansion. These aspects contribute to long-term success, enhancing competitiveness and fostering sustainable growth.

HOW DOES eCAPITAL REDUCE THE BURDEN OF EXTENDED PAYMENT TERMS?

Accounts Receivable Financing is a mainstream business financing option. It is designed to accelerate cash flow by delivering payments to businesses within hours of issuing invoice receivables to their customers. Qualification is quick and easy. New accounts can be approved, set up, and begin first funding in a few days.

Freight Factoring

INDUSTRIES WE SERVE

DOES YOUR BUSINESS WORK WITH ENTERPRISE BUSINESSES?

Enterprise businesses often employ extended payment terms as part of their financial strategy to optimize their cash flow and maintain more liquidity. This approach involves delaying payments to suppliers, typically ranging from 60 to 120 days or even longer, after receiving an invoice.

WHY CHOOSE US AS YOUR EXTENDED PAYMENT TERMS FINANCING PARTNER?

eCapital is an award-winning, industry-leader in the Extended Payment Terms solutions space. Here are a few reasons why businesses choose eCapital as their Extended Payment Terms partner:

24/7 Access To Your Cash

Manage your money your way. With eCapital Connect, our proprietary account management software, you are in control of your finances at anytime, day or night.

Fair & Affordable Rates

Our rates are the most competitive in the industry. We know what it takes to maximize your working capital and will customize a solution to meet your needs.

Facilities Up To $50 Million

We’re ready and able to provide the funding your business needs now and into the future. As your business grows, so does the invoice financing available to you.

Seamless Transition

We understand that working capital is critical to your business operations. We’re pros at onboarding new clients and our account management team is here for you every step of the way.

No Hidden Fees

We believe in transparency in all we do. That means no surprises when it comes to our agreements.

Expert Tips & Advice

Tap into our in-depth industry knowledge to better manage your business. Get smart, actionable advice and useful tips from our finance experts.

DON’T JUST TAKE OUR WORD FOR IT

For over 25 years eCapital a freight factoring company has helped more than 30,000 businesses grow. We want to do the same for you. Take a look at the latest reviews from our customers on TrustPilot!

LEARN MORE ABOUT
EXTENDED PAYMENT TERMS

Survive and Thrive: How to Rescue Your Business from Insolvency and Grow

Despite last year's surprising GDP growth, business bankruptcies surged ove...
Read More

Reviving Success: How an Asset-Based Loan Rescued a Struggling Portfolio Company

In the world of private equity, investments often come with the promise of ...
Read More

Overcoming Financial Distress With Alternative Financing

It’s been nearly four years since the onset of the COVID-19 pandemic. As ...
Read More

FREQUENTLY ASKED QUESTIONS

What is Accounts Receivable Financing?

Accounts Receivable Financing, often known as factoring, is a type of financing where a business sells its accounts receivable (invoices) to a third party (a factor) at a discount. This provides the business with immediate cash flow instead of waiting for their customers to pay the invoices.

What are the cost implications of extended payment terms?

Extended payment terms can place a significant burden on suppliers, particularly smaller ones, by creating cash flow issues. Waiting for longer periods to receive payments can lead to cash shortages, making it harder to manage their own financial obligations. This is why some suppliers may look into financing options like factoring or supply chain finance to mitigate the impact of extended payment terms.

What are net terms?

“Net terms” are often used in business-to-business transactions; they refer to the amount of time that a buyer has to pay an invoice in full to the seller. The time period is usually expressed in “net” followed by a number. For instance, “net 30” means that the buyer must pay the invoice in full within 30 days of the invoice date.

Here are common types of net terms:

Net 10: Payment is due 10 days from the invoice date.

Net 30: Payment is due 30 days from the invoice date.

Net 60: Payment is due 60 days from the invoice date.

Net 90: Payment is due 90 days from the invoice date.

Sometimes, sellers offer discounts for early payment, which is expressed in a format like “2/10 net 30”. In this case, the buyer would get a 2% discount if they pay within 10 days; otherwise, the full amount is due within 30 days.

What are Extended Payment Terms?

Extended Payment Terms refer to the practice of lengthening the period of time a buyer has to pay for goods or services after purchase. Instead of requiring payment immediately or within a short period (such as 30 days, which is quite common), a seller might provide extended payment terms of 60, 90, or even 120 days.

This practice is often used as a financial strategy by businesses, particularly in uncertain economic times. By extending payment terms, companies can maintain more cash on hand, enhancing their financial flexibility and helping them navigate financial challenges more securely.

Let's Talk

Get started today.