ETR Digital
© ETR Digital 2026
167-169 Great Portland Street, London W1W 5PF, EnglandETR Digital
© ETR Digital 2026
167-169 Great Portland Street, London W1W 5PF, EnglandExtend payment terms to 90 days, and let suppliers be paid early on request
You issue a Working Capital Note at the start of the extended term. Your supplier can hold it to maturity or discount it with a funding party at any time, at its own cost, while the balance is designed to stay in trade payables.
Buyer
YouSupplier
Funding party
Buyer’s cash
Follow an illustrative EUR 1,000,000 invoice from day 0 to day 90. Choose a seat to see each step from that side of the table.
EUR 1,000,000 on 90-day terms, extended from 60.
BuyerReceivesInvoicefromSupplier
EUR 1,000,000 face value, with a tenor of 85 days.
BuyerSendsWCN issuedtoSupplier
With the option to receive cash at any time before maturity.
BuyerNot involved in this step
EUR 1,000,000 less a discount, a cost borne by the supplier.
BuyerNot involved in this step
If the WCN was not indorsed, the supplier holds it to maturity and presents it itself.
BuyerReceivesWCN presentedfromFunding party
Or the supplier, if it held the WCN to maturity. The balance is retained as trade payables, and the WCN is retired.
BuyerPaysEUR 1,000,000toFunding party
The discount is calculated on the number of days between the day of discount and the WCN’s maturity date.
If the supplier decides not to discount the WCN, there is no revenue opportunity for the funding party.
Illustrative example. The parties must consult their own auditors to confirm the accounting treatment.
Walk through the structure with us, with your own payables, suppliers and payment terms.
A funding party pays your supplier on the agreed date; you settle the note 30 days later.
What the buyer gains
30 more days of liquidity
Balance sheet
Financial debt or trade payable, to confirm with your auditors
Supplier’s terms
Unchanged: paid in full on day 60
Supplier’s part
Indorses the WCN to the funding party, as advised by the buyer
Discount cost
Borne by the buyer
You raise cash against a note issued to a funding party; your supplier takes no part.
What the buyer gains
Cash on day 30, repaid on day 90
Balance sheet
New financial debt
Supplier’s terms
Unchanged: paid in full by the buyer on day 60
Supplier’s part
None
Discount cost
Borne by the buyer
Terms extend from 60 to 90 days, and your supplier can be paid early on request.
What the buyer gains
30 more days from extended terms
Balance sheet
Retained as trade payables, to confirm with your auditors
Supplier’s terms
Extended from 60 to 90 days
Supplier’s part
Holds the WCN, and may discount it before maturity
Discount cost
Borne by the supplier, only if it discounts early