What Is Accounts Payable Financing?
Accounts payable financing allows a third-party capital provider to pay your suppliers on your behalf.
You then repay the financing provider according to agreed terms — typically over an extended period.
Instead of paying vendors immediately from operating cash, your business preserves working capital while suppliers are paid on time.
This reduces pressure on:
- Payroll funding
- Material purchases
- Subcontractor payments
- Ongoing project expenses
How Reverse Factoring Works
Reverse factoring is structurally similar to AP financing but often more formally organized within supply chain programs.
The typical process:
- Your supplier submits an invoice.
- You approve the invoice for payment.
- Ironclad Financial Partners pays the supplier early.
- You repay Ironclad under structured terms.
The supplier benefits from faster payment.
You benefit from extended payment terms and improved liquidity.
