Small business guide
Accounts payable is the list of bills you have received but not yet paid. Managing it well protects supplier relationships and your cash.
✓ Checking what you qualify for does not affect your credit score.
When a supplier delivers and gives you time to pay, the bill becomes an account payable. It is a liability on your balance sheet until you pay it.
| Step | Why |
|---|---|
| Record every bill when it arrives | With the date, amount and due date |
| Check it against the order or receipt | Confirm you received what you were billed for |
| Schedule payment by due date | Pay on time, not early, unless there is a discount |
| Review weekly | Know what is due in the next two weeks |
Terms such as net 30 mean full payment is due 30 days from the invoice date. Some suppliers offer a discount for early payment, written like 2/10 net 30, meaning a small discount if you pay within 10 days, otherwise the full amount is due in 30. Compare the discount with what the cash could do for you if you kept it longer.
Align payables with when customers pay you. If receivables are slow and bills are due, a short-term bridge can protect supplier terms. See funding while waiting on receivables and accounts receivable.
Clean books make a funding review faster, because the numbers a funder reads in your bank statements match what you can explain. We fund from $25,000 to $5,000,000, decisions move fast, and funding can arrive in as little as 24 hours for qualified businesses. We read about three months of business bank statements, consider owners with a FICO score of 500 or above, and sole proprietors can apply.
See bookkeeping habits that make funding easier and the financial statements funders want, then start your application. It takes about five minutes and begins with a soft credit pull.
Payable is money you owe. Receivable is money owed to you.
Late payment can mean fees and strained supplier relationships. Ask for a short extension before the due date if you need one.
Only if the saving is worth more than keeping the cash. Compare it with your other uses of that money.
As a liability on the balance sheet.
Working capital can be used for supplier payments. Funding runs from $25,000 to $5,000,000.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
