The settlement date is when the assets are exchanges, payment is made, or trades are netted off. This date is generally after the Trade date, which is the date on which the businesses execute the transaction and is sometimes known as the transaction date too.
What to expect on settlement day?
On settlement day, your solicitor will attend a settlement meeting with your lender and seller to exchange legal documents. Here is a breakdown of what happens: Your solicitor and the Sellers Solicitor will agree on the Settlement Statement which reconciles any adjustments that were pre-paid or accrued during the settlement period (such as rates).
What is average settlement period?
The Average Settlement Period for Trade payables depicts with an average of 250 days an even higher period for goods to be paid by the business to suppliers. Considerable reasons for this result might be a special trade payment agreement with some suppliers.
