Choco Up has launched an accounts payable financing product for SMEs.
The expansion of its credit suite is designed to help businesses manage their cash flow as customer payment cycles lengthen, according to a statement from the company.
SMEs often face a mismatch between supplier payment terms and customer settlements. Suppliers typically expect payment within 30 days, while customer payments can take 60 to 120 days.
This gap can delay procurement, payroll, and inventory purchases. The company also noted that slow payments rose year-on-year to 44.39% in Q4 2025.
The impact is prominent in industries with large procurement requirements and project-based delivery models.
These include manufacturing, logistics, healthcare suppliers, and business-to-business technology.
“These businesses often have to commit significant upfront resources to procure materials, fulfil orders, or deliver projects, while receiving customer payments only months later,”
said Percy Hung, CEO and Founder of Choco Up.
Choco Up’s AP and AR Financing solutions use AI tools to streamline applications and underwriting.
The system automates client document checks and flags potentially fraudulent submissions for human review.
Choco Up states this approach shortens credit assessment turnaround times and improves the accuracy of credit decisions.
The company aims to provide an alternative financing model that moves beyond traditional lending practices.
Featured image credit: Edited by Fintech News Singapore, based on image by chocolarte via Magnific
