Financial Services

Reverse factoring

Reverse factoring, also called supply chain finance, works in the opposite direction of invoice factoring. Instead of a company factoring customer invoices, it factors supplier invoices. In doing so, the company is factoring part of the supply chain. Reverse factoring is an accounts payable solution. Both the buyer & supplier experiences smoother processes as they have to deal with banks/financial institutions for payments. This further translates to strong cooperation between buyers and suppliers which creates competitive advantage