Siemens has launched a new cash flow tool that allows customers in the engineering sector up to 180 days to pay for products. Extended Payment Terms (EPT) from Siemens Financial Services (SFS) is now available to regular buyers of Siemens products. Through a revolving credit facility, SFS purchases the debt from Siemens on behalf of the customer and then gives the customer flexible payment options with a choice of when to pay, up to 180 days.
Businesses in the engineering sector often wait a significant period of time before receiving payments from customers and are therefore buying products before invoices are settled. Consequently, many are forced to borrow money through traditional methods such as bank loans and overdrafts, tying up these credit lines. EPT means customers have access to a dedicated credit facility for purchases. Other borrowing facilities are left free to be used more efficiently to support business development.
EPT is integrated into the order process and customers continue to order from Siemens as they normally would, minimising administration. Ian Cole, Head of Invoice Finance for Siemens Financial Services says, “Through use of EPT, businesses can match their expenditure with cash flow and free up additional finance for investment in growth ambitions.
“The customer has the freedom to choose when they use EPT and, with no impact on existing credit lines and no additional security required, Siemens’ customers in the engineering sector can quickly and easily benefit.”
For more information on Extended Payment Terms visit: https://www.siemens.com/uk/en/home/products/financing/extended-payment-terms.html