# Accounts Payable

*Accounting & Reporting — Finicade finance glossary*

Accounts payable is what you owe suppliers for goods and services already received. It's effectively interest-free financing, which is why stretching payment terms is the cheapest working-capital lever a company has — and why large buyers push terms onto smaller suppliers who can least afford them. Payables spiking relative to purchases can signal genuine cash strain rather than clever treasury management.

**Also known as:** AP, payables, trade creditors

**Related terms:** [Accounts Receivable](https://finicade.com/glossary/accounts-receivable), [Working Capital](https://finicade.com/glossary/working-capital), [Cash Conversion Cycle](https://finicade.com/glossary/cash-conversion-cycle), [Liquidity](https://finicade.com/glossary/liquidity), [Current Ratio](https://finicade.com/glossary/current-ratio)

Source: https://finicade.com/glossary/accounts-payable