Suppose that a large firm announces new payment terms. Instead of paying their suppliers in $30$ days, all supplier invoices will be paid in $50$ days. Along with the new payment terms, the large firm has implemented a supply chain finance program. What are the implications of this change?

Suppliers may wait and be paid the full amount of each invoice after $50$ days, or they may choose to sell the invoices to the financial institution earlier and receive a discounted amount.

All suppliers must wait $50$ days to be paid after submitting an invoice.

Suppliers who have been with the company for more than $5$ years will still be paid in $30$ days.

Suppliers will have to wait $50$ days for invoices to be paid, but they may receive unsecured loans from the larger company to finance the receivables.