Reverse Factoring is a buyer-led financing solution that allows suppliers to receive early payment on approved invoices, based on the buyer’s credit profile rather than the supplier’s. Once an invoice is approved by the buyer, a financing partner pays the supplier early, improving supplier liquidity without changing existing commercial terms.
The buyer then settles the invoice with the financier at the agreed due date. By anchoring financing to the buyer’s creditworthiness, Reverse Factoring lowers financing costs for suppliers while giving buyers greater control over payment timing, supplier stability, and overall working capital strategy.