Reverse Factoring
Reverse Factoring – lets buyers offer an early payment option to their suppliers based on approved invoices.
Suppliers sell/reassign the invoices to a third-party funder in exchange for a discounted early payment. Buyers then pay the full invoice value to the third-party funder on maturity date - typically under an Irrevocable Payment Undertaking.
Linking a buyer, their supplier, and a funder, Payables Finance reduces the corporate’s supply chain risk and expands the supplier’s finance options.