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Procurement as a Service (PaaS): Overview & Requirements

Procurement as a Service (PaaS) allows you to finance and manage supplier payments tied to a specific order, helping you fund production before receiving payment from your customer. PaaS is an advanced workflow built on top of invoice financing and requires prior experience using the Klear platform.

What is PaaS?

PaaS enables Klear to:

  • Fund your supplier payments before you invoice your customer
  • Structure payments based on your production timeline
  • Manage capital flow across your supply chain

This allows you to take on larger orders and fulfill them without fronting the cost of goods.

Who is Eligible for PaaS?

PaaS is not available to all businesses by default. To qualify, you must meet the following requirements:

1. Pro Tier Subscription Required

PaaS is only available to businesses on Klear’s Pro subscription tier.

If you are not currently on Pro, please reach out to your Customer Success Manager to discuss upgrading.

2. Established Invoice Financing History

You must first demonstrate success using Klear’s invoice financing by:

  • Uploading invoices
  • Accepting funding offers
  • Successfully completing collection cycles, including customers paying the funded invoices into the Klear financial account

PaaS builds on this foundation, so this step is required.

2. Active Use of Payables in Klear

You must already be using Klear Payables to make supplier payments utilizing funds in your Klear account.

This ensures that all capital flow, from funding to supplier payment, is fully tracked and managed within Klear. For PaaS, all supported supplier payments must be made through Klear.

3. Goods-Based Transactions Only

PaaS is only available for physical goods and materials.

PaaS is not supported for services.

How PaaS works

PaaS connects your customer order, supplier payments, and invoice financing into a single structured workflow.

End-to-End Flow

  1. Receive a Purchase Order from Your Customer
    1. Your customer issues a purchase order for goods.
  2. Create and Structure the Order in Klear
    1. Upload the customer PO to Klear and create an order. Within the order, you:
    2. Add an invoice event for what you plan to invoice your customer (amount, date, due date)Create and Structure the Order in Klear
    3. Add operational milestones tied to production
    4. Upload supplier purchase orders under those milestones
    5. Create Payables for each expected supplier invoice (amount, date, due date)

  3. Klear will provide an offer to provide PaaS for this order. You must review the offer and sign, committing to utilize the funds provided for the supplier payments indicated and to sell Klear the final customer invoice.
    1. The offer will include a schedule detailing when funds will be advanced and which supplier invoices they will be applied to. Depending on the amount and timing of supplier invoices, funds may be advanced in stages. This ensures the lowest cost of capital.
  4. Upload Supplier Invoices
    1. As your suppliers issue invoices, upload each invoice to the corresponding Payable within the order
  5. Klear Funds Supplier Payments
    1. Klear advances funds for approved supplier invoices into your Klear account. You must use these funds to pay these suppliers through Klear Payables within the order.
  6. Deliver Goods and Invoice Your Customer
    1. Once production is complete:
      1. Deliver the goods to your customer
      2. Invoice your customer
      3. Obtain proof of acceptance of the invoice
      4. Upload your invoice and proof of acceptance to Klear

  7. Invoice Financing and Advance
    1. Klear purchases your invoice and advances up to 90% of the invoice value into your Klear account. You must leave these funds in your Klear account until reconciliation of supplier funding is completed.

  8. Reconciliation of Supplier Funding
    1. From the invoice advance, Klear recovers the funds previously advanced for supplier payments. Once Klear has recovered the funds advanced for PaaS, you are free to utilize the remainder.

  9. Customer Payment and Final Settlement
    1. Your customer pays the invoice into your Klear account
    2. Klear recovers any remaining balance from the invoice purchase advance
    3. The remaining funds are released to you

Key Takeaway

PaaS allows you to fund supplier payments before invoicing, with collection reconciled through the purchase of your customer invoice. This process allows Klear to help you pay your suppliers and unlock capital from your customers versus needing to pay suppliers up front and wait the length of your customer’s payment terms to collect.

All steps — from supplier payments to final collection — must be completed within Klear.