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
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
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.
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.
Contact Us
Email: info@recosib.co.ke
Hillside Apartments, 4th Floor, Suite 11, Upperhill, Ragati Road, Nairobi.
Call us: +254 783 777 555 / +254 20 7856 750
