Accounts payable
Money your business owes suppliers for goods or services bought on credit but not yet paid for.
What it means
Accounts payable (AP, or trade creditors) is the mirror image of accounts receivable: it is what your business owes its own suppliers for purchases made on credit. It appears as a liability on your balance sheet until each supplier invoice is paid.
Managing payables well means paying on time to protect supplier relationships, while not paying so early that you give up cash you could otherwise hold.
Why it matters for cash flow
The gap between collecting from customers and paying suppliers is a core driver of working capital. Stretching payables too far can strain supplier trust; paying too fast can leave you short. If you are on the receiving end and chasing your own customers, raising clean invoices through Merion invoicing helps you get paid sooner.
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