Supply chain payments
Instant payment confirmation enables immediate production start. Eliminate delays in just-in-time and make-to-order manufacturing.
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Supply chain payments
Problem
The bottleneck nobody talks about
In Just-in-Time and Make-to-Order manufacturing, delivery precision is everything. When the order requires confirmed prepayment, every hour of payment lag pushes the production schedule out.
Standard SEPA Credit Transfers settle on the next business day at the latest. For a supplier who cannot start production without prepayment, that window is dead time. The cost eventually lands on the customer, in delayed deliveries or stretched lead times that nobody priced into the original schedule.
52% of European companies report problems due to late payments in 2024, five points higher than in 2023 and ten points above 2021. Average payment periods continue to exceed 60 days in both B2B (60.3 days) and G2B (69.8 days) transactions. Without late payments, EU micro companies, SMEs and intermediate-sized enterprises could unlock over €100 billion a year in additional cash flow.
Cross-border trade faces sharper friction: 56% of exporters report issues with delayed payments versus 49% of non-exporters. The problem cascades. 31% of companies admit to delaying their own payments because they themselves are paid late. Companies spend an average of 9.85 hours per week chasing overdue invoices.
European Commission — EU Payment Observatory Annual Report, 2025
In Atradius' 2025 Western Europe survey, manufacturing accounted for 40% of respondents (1,176 of 2,940 interviews), the largest sector surveyed. Across Western Europe, 47% of B2B invoices are paid after their due date, and 26% of companies report their Days Sales Outstanding has increased over the past 12 months. Among the top reasons B2B customers pay late: operational constraints (34%), customer liquidity issues (34%), and supply chain disruptions (29%).
Atradius — Payment Practices Barometer: Western Europe, 2025
Solution
Real-time payment, structured request.
SEPA Request-to-Pay combined with SEPA Instant Credit Transfer creates a payment workflow built for JIT and MTO schedules. The supplier sends a structured payment request with defined terms. Once the buyer approves, funds settle in under ten seconds and production starts on confirmed settlement.
SRTP provides the requesting layer. The supplier generates a structured payment request directly from ERP, carrying the order reference and a defined validity window of 24 to 48 hours. SEPA Instant handles the settlement layer. The buyer's approval triggers an immediate credit transfer that completes in under ten seconds, 24/7, including across borders within the SEPA zone.
For JIT manufacturers, the consequence is structural. Cross-border payment timing stops being a production constraint. The supplier can quote the same lead time for a buyer in Frankfurt as for one in Warsaw.
How it works
Order confirmed. Payment settled. Factory activated.
- Supplier generates a SEPA Request-to-Pay - Generated directly from the supplier's ERP. A structured payment request carrying the order reference and a 48-hour validity window.
- Buyer receives and approves - The request arrives instantly in the buyer's corporate banking interface as an actionable notification. One action to approve, with no manual data entry or risk of misrouted transfers.
- Payment settles via SEPA Instant - Funds are transferred and confirmed in under ten seconds. The supplier receives automated payment confirmation in real time.
- Production is released automatically - Payment confirmation triggers the production release directly, with no phone calls or manual handoff in between. The factory floor activates within minutes of the order being placed.
Result
What both sides gain
- Faster production kickoff - Manufacturing begins within minutes of payment confirmation, instead of the following business day.
- On-time delivery - Payment-related delays stop being a variable in delivery planning.
- Improved cash flow - Instant settlement means working capital is available exactly when production needs it.
- Reduced exposure - Buyers pay against defined terms. Suppliers eliminate the risk of producing before funds arrive.
- ERP-native automation - SRTP and SEPA Instant integrate directly into existing procurement and finance systems. Structured ISO 20022 data replaces manual reconciliation.
Use Case Flow
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Book a demo to see how ToriiPay can reduce costs and speed up payments for your business. Or schedule a consultation to explore partnership opportunities.