Working Capital

Standard payment terms for energy suppliers are 14 days. These are typically negotiable and it is possible to achieve payment terms up to 120 days from invoice. You may need to pay an additional cost for extended payment terms, but it could still be worthwhile given that a suppliers cost of cash may be less than your own.

Suppliers also generate a positive cashflow position from customers paying monthly, as some of their costs are paid quarterly or annually. With the appropriate knowledge and support It is possible to negotiate cashflow benefits into your contract.

It is not uncommon for generators to get paid up to 60 days following the physical delivery of electricity. Let us negotiate your payment terms to allow you to get paid sooner. It may also be possible to introduce a tri-party arrangement (commonly known as Supplier Financing) so you can get paid much sooner. There will be a cost to achieve this (fees to a bank), but it may still be beneficial based on your cost of cash relative to that of the external market.