How New Payment Instruments Can Positively Impact Supplier Relationships

European enterprises are rethinking liquidity and transparency through CRX Pay

The New Dynamics of Payments and Working Capital

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.

From Efficiency to Relationship Management

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.

CRX Pay: A New Approach

CRX Pay 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:

• Liquidity without friction: Buyers gain extended payment terms and immediate cash flow relief without burdening suppliers.
• Supplier reliability: Suppliers receive full, on-time payments, strengthening trust and supply continuity.
• Discount capture: Buyers can settle within discount windows while still benefiting from extended payment terms.
• Compliance: SPS aligns with IFRS 9 guidance on liability derecognition and recognition, supporting clear accounting treatment and disclosure.
• Speed and simplicity: Implementation is fast, leveraging existing payment processes and CRX’s marketplace infrastructure.

In essence, CRX Pay bridges financial agility and supplier payment reliability: buyers gain liquidity flexibility while suppliers receive consistent, on-time settlement.

Implementation Considerations

Successful CRX Pay 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 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 works with clients to ensure classification and disclosure are addressed early, avoiding surprises during audit cycles.

Rating considerations. Where applicable, corporates should assess how CRX Pay affects rating agency metrics and disclosures. Early engagement with rating advisors can inform program design and communication strategy.

Regulation and Transparency: The New Standard

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’ 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 CRX Pay

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:

• S&P now treats extended payment terms beyond 90 days as debt financing.
• Fitch benchmarks programs against market norms to assess whether terms are “significantly longer than normal.”
• Moody’s applies qualitative analysis, emphasizing liquidity risks if programs are discontinued.

The message is clear: transparency and comparability are no longer optional. Proper structuring and early assessment of programs like CRX Pay 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 Relationship Dividend

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.

CRX Pay amplifies that transformation in three distinct ways:

1. Flexible Coverage: Any supplier invoice can be processed through CRX Pay regardless of currency or jurisdiction, giving treasury teams broad optionality.
2. Predictability and Trust: Consistent, automated payments improve supplier confidence, which in turn supports pricing stability and supply reliability.
3. Operational Simplicity: CRX Pay requires no complex integration or supplier onboarding, making it accessible for treasury teams seeking immediate liquidity improvement.

The result is a new equilibrium where buyers and suppliers share financial benefits rather than financial strain.

Platforms Powering the Revolution

Platform-based working capital financing solutions like CRX are accelerating this shift. Unlike traditional, single-bank setups, CRX’s independent marketplace integrates multiple financing partners on a single, automated infrastructure.

For corporate treasurers, this delivers:

• Diversified liquidity access and competitive pricing through multi-funder participation.
• Full visibility into transaction flows and accounting disclosures.
• Scalability across jurisdictions, currencies, and counterparties.

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 Outlook: Treasury Flexibility and Supplier Stability

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.

CRX Pay 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 CRX Pay can help your organization unlock liquidity, strengthen supplier trust, and enhance transparency.