The short answer is yes. Using trade payables financing allows you to manage your cash flow and liquidity during times of supply chain disruption.
The formula is simple. The payables finance company pays your vendors within their stated terms. You choose when you want to repay the finance company: 30, 60, or 90 days later. This enables you to match up your payables with corresponding receivables so that you are not funding the supply chain disruption. Preserving working capital in this way allows you to meet ongoing operational expenses such as payroll, utilities, mortgage, etc.
Contact us if you want to learn more about trade payables financing.