A practical guide to managing international supplier payments, currencies and working capital
As businesses become increasingly international, paying suppliers across multiple countries can create a surprisingly complex financial process.
A business might have suppliers in the UK, Europe, North America, Asia or Latin America, each potentially invoicing in a different currency, using different banking systems and operating on different payment terms.
For finance teams, this can mean managing multiple currencies, payment deadlines, foreign exchange exposure and international transfers at the same time.
For businesses making regular international supplier payments, there may be another option: Early Payment Release.
This can allow eligible businesses to have supplier invoices paid immediately while giving the business up to 75 days to settle the payment.
Combined with international FX support, this can provide additional flexibility around both supplier payments and working capital.
What is Early Payment Release?
Early Payment Release is designed to help eligible businesses manage the timing of their international supplier payments.
Instead of waiting for the business's normal payment cycle, an approved supplier invoice can be paid immediately.
The business then has up to 75 days to settle the amount with the FX/payment partner, subject to the applicable approval, terms and requirements.
Supplier invoice → Immediate supplier payment → Extended settlement period
This can be particularly relevant for businesses that have regular international supplier commitments but want greater flexibility around when cash leaves the business.
How does it work with international currencies?
One of the potential advantages is that the supplier does not necessarily need to receive the currency in which the client ultimately settles.
For example, an international supplier could receive payment in its local currency, while the client settles the corresponding amount in USD, GBP, EUR or another supported currency.
This can simplify the process for businesses working across multiple countries.
Rather than maintaining separate payment arrangements for every supplier currency, businesses can use an international payment and FX solution to manage the underlying currency conversion and settlement.
For example:
A UK-based business may have a supplier in Germany invoicing in EUR.
- A supplier in the US invoicing in USD.
- A supplier in Mexico invoicing in MXN.
- A supplier in the UK invoicing in GBP.
The suppliers can receive payment in the currency they normally use, while the business manages its settlement through its agreed FX/payment arrangement.
Why does this matter for working capital?
International supplier payments can create pressure on working capital, particularly for businesses with significant monthly payment obligations.
A company may have strong revenue and healthy long-term cash flow but still experience short-term pressure when several large supplier invoices become due at the same time.
An extended settlement period can provide additional flexibility.
With up to 75 days to settle, eligible businesses may be able to better align supplier payments with their own cash-flow cycle.
This doesn't eliminate the underlying liability: the payment still needs to be settled, but it can provide additional time to manage cash within the business.
Key benefits of Early Payment Release
- Up to 75 days to settle: Eligible businesses can potentially gain up to 75 days between the supplier being paid and the business settling the amount.
- Suppliers are paid in local currency: International suppliers can receive payments in their local currency, helping maintain their normal invoicing and payment arrangements.
- Settlement in major currencies: Depending on the arrangement, businesses can settle in currencies such as USD, GBP and EUR.
- Simplified international payments: A centralised international payment and FX solution can reduce some administrative complexity.
- Greater working-capital flexibility: The ability to extend settlement can help businesses manage the timing of cash outflows more effectively.
- FX management: An FX partner can help manage currency conversion and, where appropriate, access FX hedging alongside early payment arrangements.
- Predictable service costs: The solution can be provided on a fixed monthly fee, subject to agreed commercial terms.
Who could benefit from this?
Early Payment Release is likely to be most relevant to businesses that regularly make international supplier payments.
Technology companies working with overseas development teams.
Professional services businesses using international contractors or suppliers.
Importers and exporters.
International marketing and advertising businesses.
Manufacturing and distribution companies.
Businesses with suppliers across multiple currencies.
Companies expanding into new international markets.
Businesses looking to improve working-capital flexibility.
It may also be useful for businesses that already have an international payment process but are looking for a more streamlined way to manage supplier payments and FX together.
Early Payment Release vs traditional supplier payment
The traditional process is relatively straightforward:
- Supplier invoices → Business pays supplier → Cash leaves business
With an Early Payment Release arrangement, the process can instead look like:
- Supplier invoices → Supplier paid immediately → Business settles later
For companies with predictable international supplier payments, that difference in timing can be commercially significant.
The right solution will depend on the company's payment volumes, cash-flow requirements, currencies, supplier profile and eligibility.
What about FX hedging?
Currency movements can add another layer of uncertainty to international supplier payments.
If a business knows it has a future payment obligation in a foreign currency, fluctuations in exchange rates can affect the ultimate cost of that payment.
FX hedging can potentially help businesses manage this exposure by providing greater certainty around future currency requirements.
The appropriate hedging strategy will depend on the company's circumstances, currencies and risk-management objectives, so businesses should discuss this with their FX specialist.
A more joined-up approach to international payments
For businesses operating internationally, supplier payments and foreign exchange are often treated as separate financial processes.
They don't necessarily need to be.
Bringing together supplier payments, FX, currency management and settlement timing can give finance teams a more joined-up view of their international payment obligations.
At EOR Partners, our wider global services already include FX solutions designed to support areas such as supplier payments, payroll and currency management.
Our approach is consultative: rather than assuming one solution fits every business, we help understand the company's international requirements and connect it with the appropriate solution and specialist support.
Is Early Payment Release right for your business?
Early Payment Release isn't simply about paying suppliers faster.
The potential value is in changing the timing and management of international payments.
If your business is making regular overseas supplier payments, particularly across multiple currencies, it may be worth looking at:
- How much you pay internationally each month.
- Which currencies you regularly use.
- How long suppliers currently give you to pay.
- When cash actually leaves your business.
- Your exposure to currency movements.
- Whether FX hedging could be appropriate.
- Whether your current payment process is unnecessarily complex.
For some businesses, improving the way international payments are managed can create meaningful operational and working-capital benefits.
Looking to simplify international supplier payments?
EOR Partners can help you explore international payment and FX solutions tailored to your business.
Whether you're managing overseas suppliers, multiple currencies or growing international operations, speak to our team to discuss your requirements and determine whether Early Payment Release could be appropriate for your business.
Important note: Early Payment Release is subject to eligibility, approval and applicable commercial terms. Availability, settlement periods, FX services and hedging arrangements may vary depending on the business and transaction.
