Reverse Factoring
Reverse factoring is when a factoring company, interposes itself between a company and its suppliers and commits to pay the company’s invoices to the suppliers at an accelerated rate in exchange for a discount. This is a lower-cost form of financing that accelerates accounts receivable receipts for suppliers.
Reverse Factoring
How Reverse Factoring Works
Under this solution, you as the buyer provide a platform for suppliers to sell invoices to us at a discounted rate and gets immediate access to cash whereas you get more time to pay the invoices. This helps in optimizing working capital for both the supplier and the buyer thereby providing liquidity to all business
Benefits of RecoSIB's Intervention in Paying Suppliers
Below are benefits of a buyer paying its suppliers through reverse factoring:
Your business will be able to foster very close links with its core group of suppliers since this can be a major benefit to them in terms of accelerated cash flow.
100% of the invoice value is available for factoring, rather than the discounted amount that is available through a normal factoring arrangement.
The company no longer has to deal with requests from suppliers for early payment.
Why Choose RecoSIB LLP
Improve supplier relationships and manage cash flow with RecoSIB LLP’s Reverse- Factoring. We help businesses secure early supplier payments while maintaining working capital flexibility.
Early payment to suppliers without affecting cash flow
Strengthen supplier relationships with timely payments
Flexible financing terms tailored for SMEs
Competitive rates and simple application process
With RecoSIB LLP, you can ensure your suppliers get paid on time while keeping your business financially stable.