Big companies including AT&TKeurig Dr Pepper and Krispy Kreme are pulling back on a type of short-term financing that gives them more time to pay their invoices.

These agreements with vendors, known as supply-chain or vendor financing, are popular because they allow buyers to hold on to their cash longer, and the short-term financing typically isn’t counted as debt on corporate balance sheets. But higher interest rates are changing the equation for some companies. 

AT&T is paying down a program that has seen sharply rising interest rates since the Federal Reserve began hiking rates two years ago. “We used that as a cheap form of financing” when rates were at record-low levels, said Pascal Desroches, chief financial officer at AT&T. But those obligations have grown too expensive, Desroches said…

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