Choco Up, a leading growth financing platform in Asia, has launched its new Accounts Payable (AP) Financing solution, offering small and medium-sized enterprises (SMEs) up to S$2m to pay suppliers upfront. This initiative aims to address the cash flow challenges SMEs face due to increasingly lengthy payment cycles, as announced at a recent broker event on 2 July.
The AP Financing solution is part of Choco Up’s expanded financing suite, complementing its enhanced Accounts Receivable (AR) Financing, previously known as invoice financing. This integrated Supply Chain Financing solution supports businesses throughout the entire working capital cycle. With supplier payment terms often set at 30 days and customer payments extending to 60, 90, or even 120 days, SMEs face a cash flow gap that can hinder procurement, payroll, and expansion efforts.
Industries such as manufacturing, logistics, and healthcare, which require significant upfront resources, stand to benefit significantly from this offering. Percy Hung, CEO and Founder of Choco Up, highlighted the importance of this solution, stating, “Our Supply Chain Financing solution helps bridge this gap, enabling them to preserve liquidity, sustain growth investment, and strengthen supplier relationships.”
The financing suite, powered by artificial intelligence, streamlines the application and underwriting process, enhancing credit decision accuracy and reducing turnaround times. As payment cycles continue to lengthen, Choco Up’s unified AR and AP financing suite aims to help SMEs unlock growth opportunities whilst maintaining cash flow stability.
