Reverse factoring is a bank-independent purchase financing whereby three parties form a collaborative contract together – your company, your supplier and the factor.  Instead of you settling your receivables immediately, the factor pays your supplier promptly.  That means you can exploit the full potential of credit periods and transfer the invoice amount together with interest to the factoring company at a later date. The supplier’s receivables must be free of third party rights.

Unlike classic purchase financing, with reverse factoring sale of individual invoices is not possible.  As well as this, there are often more requirements with regard to the volume and creditworthiness of the parties.