“Approved Payable Finance (APF)” is a buyer-centric business which comprises of the discounting of supplier’s invoices by the buyer’s bank. The advance funding granted to the supplier is based on the buyer’s upfront approval to the financing bank to pay these invoices on due date.
APF is a joint program of the buyer and his bank proposed to the buyer’s suppliers.
The buyer submits the approved documents (invoices) to the bank to request for finance programme favouring the supplier. This request could be received as an incoming message or by manual input. Upon receiving the request, an APF offer is provided to the supplier. If the supplier agrees to this offer at the provided discounted value, APF funding (finance) is done and the supplier is credited for the agreed value.
The buyer will pay the finance amount along with any charges at the document (invoice) maturity/due date or at a different agreed due date with the bank.
The MyModelbank contains several contracts at various stages of processing which provide examples of the contingent variations. The relevant transactions have then been processed in full to illustrate the methods of working with the application. The list of contracts and processed transactions can be found in the chapter 'Contracts and Transactions'. These examples have been written with the standard version of the application. Due to the fact that customer-specific adjustments may have been carried out, real results can vary from those provided by the MyModelbank.
The different ways of working with the individual transactions are described in the user documentation of the application.