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Payables

In business, payables refer to the amounts a company owes to its suppliers or creditors for goods and services received but not yet paid for. They are recorded as liabilities on the company’s balance sheet, specifically under accounts payable.

Payables are part of a firm’s working capital and represent short-term debt that is typically due within 30 to 90 days. Efficient management of payables is important for maintaining good supplier relationships and ensuring healthy cash flow. Delays in payment can damage creditworthiness, while paying too early can unnecessarily tie up cash that could be used elsewhere in the business.

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