Reverse Factoring
Reverse Factoring | Supply Chain Finance | Export Factoring | Letters of Credit
Reverse factoring also known as supply chain finance is an accelerated form of accounts receivable funding, a product typically offered by a factoring company who commits for the benefit of its client to pay the client's invoices to the suppliers in a timely manner for a discount. Generally low-cost funding that accelerates accounts receivable receipts for suppliers.
Reverse factoring / supply chain finance is a true sale of the suppliers receivables and an extension of the buyer's accounts payable.
We offer a whole range of trade finance and export funding products that are flexible and structured to meet the requirements of the client. In addition, in order to help increase your company's purchasing power, we can fund your imports with PO facilities and PO funding based not only on the importers credit but also on the credit worthiness of your customers. Vendor payments include L/C, D/C, and T/T.
Funding facilities can include:
Import financing
In
combination with receivable discounting, we can help clients
import/purchase additional pre-sold products from their vendors with
a letter of credit or documentary sales terms. Fudidng arrangements
that can be a particularly good fit for very high-growth or seasonal
businesses.
Inventory financing
For
clients dealing in goods that have a large and “liquid” market and
holding goods in reputable third party warehouses, we can arrange
financing against the standing inventory. This inventory financing
is typically arranged with conditions on the advance rate and tenor
of funding, and must include sound backup liquidation planning.
Vendor financing
For firms
with solid financials and $500+ million in annual revenues, we can
arrange vendor finance programs (also known as “reverse factoring”
or “payables financing”). Often structured with “off-balance sheet”
treatment for our client, these arrangements can be a true
“win-win”—offering our client’s vendors greater liquidity at a lower
interest cost while allowing our client longer payment terms.
Benefits
The program allow
our clients to optimize their working capital by providing solutions
to you and your upstream and downstream partners. For instance, you
can extend your payment terms and avoid discrepancies and fees
associated with letters of credit and your suppliers benefit from an
on-demand pool of liquidity, lower borrowing costs, faster funding,
and a higher advance rate.
For more information, please contact us via this SHORT FORM for more information.