European enterprises are rethinking liquidity and transparency through Supplier Payment Solution (SPS)
Across Europe, treasury teams face a perfect storm of rising costs, constrained credit, and slower growth. In France alone, 86% of firms report late payments, and average terms have stretched to nearly 50 days. According to the EU Payment Observatory Annual Report 2025, more than half of EU companies reported difficulties due to late payments in 2024, with average payment periods exceeding 60 days in both B2B and G2B transactions. Late payments remain a persistent drag on liquidity and growth.
As suppliers contend with tightening liquidity and buyers protect their own cash flow, the balance of financial resilience is under pressure. The challenge is no longer simply improving working capital ratios, but maintaining healthy supplier ecosystems while doing so.
This shift marks a new phase in working capital management: where transparency, digital finance, and regulated payment solutions replace ad-hoc, short-term approaches.
Historically, treasurers optimized working capital through payables and receivables adjustments to extend DPO, shorten DSO, and improve cash conversion cycles. But as supply chains grow more interdependent, financial efficiency alone does not guarantee stability. Suppliers increasingly evaluate buyers on payment reliability alongside order volume, and payment performance directly shapes commercial trust. In industries where continuity is vital, liquidity and relationship quality are inseparable.
Modern finance leaders recognize this: extending payment terms responsibly and ensuring suppliers remain financially sound is a strategic differentiator.
The Supplier Payment Solution (SPS) enables buyers to extend payment terms, often by up to 60 days or more, without delaying supplier payments. A regulated payment service provider settles supplier invoices at maturity, while the buyer reimburses that provider 60 days later.
This simple model delivers measurable value:
In essence, SPS bridges financial agility and supplier payment reliability: buyers gain liquidity flexibility while suppliers receive consistent, on-time settlement.
Successful SPS deployment requires alignment across three areas:
Roll-Out and Technical Setup. Even though the technical setup is very lean it requires clear responsibilities and a defined project team on the corporate side. Regular alignment with all parties through structured check-ins ensures progress remains on track. CRX Markets supports clients through technical implementation planning and process integration with existing payment workflows.
Accounting perspective. Accounting treatment should be agreed upon before implementation begins. CRX Markets works with clients to ensure classification and disclosure are addressed early, avoiding surprises during audit cycles.
Rating considerations. Where applicable, corporates should assess how SPS affects rating agency metrics and disclosures. Early engagement with rating advisors can inform program design and communication strategy.
This evolution isn’t happening in isolation. Rating agencies and regulators are increasingly attentive to how working capital programs are structured and disclosed.
According to CRX Markets’ 2025 corporate survey, 58% of finance leaders said accounting considerations were “very relevant” when analyzing working capital instruments. Similarly, 40% cited rating agencies as a strong influence on their financing decisions.
Accounting Treatment of Supplier Payment Solution (SPS)
The accounting treatment differs from traditional supply chain finance. When the payment service provider settles your supplier invoice at the original due date, the trade payable is extinguished and DPO metrics remain unchanged. The new liability to the PSP is typically classified as “other trade liability” or “other liability” rather than trade payables, generally excluded from DPO calculations but included in working capital and operating cash flow metrics. The result is operating cash flow improvement and working capital optimization without extending reported DPO.
Early accounting assessment is essential, as auditor treatment varies by practice and company situation.
Rating agency perspectives reinforce the trend:
The message is clear: transparency and comparability are no longer optional. Proper structuring and early assessment of programs like SPS ensure that financial statements reflect true economic substance while preserving investor confidence.
For treasurers, that means balancing liquidity optimization with visibility, governance, and disclosure.
The working capital shift underway across Europe is redefining the role of treasury. Liquidity management is no longer a siloed function, but a strategic discipline that strengthens enterprise resilience.
The Supplier Payment Solution amplifies that transformation in three distinct ways:
The result is a new equilibrium where buyers and suppliers share financial benefits rather than financial strain.
Platform-based working capital financing solutions like CRX Markets are accelerating this shift. Unlike traditional, single-bank setups, CRX Markets’ independent marketplace integrates multiple financing partners on a single, automated infrastructure.
For corporate treasurers, this delivers:
As working capital management becomes more data-driven, marketplaces provide the visibility and flexibility treasurers need to orchestrate global programs efficiently, whether managing receivables or payables.
The next phase of working capital innovation will be defined by collaboration rather than compression. Buyers that can extend payment terms responsibly while preserving supplier liquidity will hold a strategic advantage in times of uncertainty.
SPS offers a pragmatic path forward: immediate liquidity for corporates, timely payment for suppliers, and straightforward accounting treatment. The instrument sits entirely within treasury’s domain, enabling flexible, ad-hoc decision-making without requiring supplier participation or procurement involvement.
Discover how Supplier Payment Solution can help your organization unlock liquidity, strengthen supplier trust, and enhance transparency.
Contact CRX Markets to explore tailored solutions for your working capital strategy.
