Supplier Financing is a financial arrangement where suppliers provide goods or services to a buyer with extended payment terms. This allows the buyer to receive products without immediate cash outflow, improving their cash flow and operational efficiency. In this arrangement, suppliers may offer discounts for early payments or use third-party financing companies to facilitate transactions. This helps suppliers maintain steady sales while giving buyers the flexibility to manage their finances better. Overall, Supplier Financing benefits both parties by fostering stronger business relationships and enhancing liquidity.