Supply Chain Financing, or Reverse Factoring, Delivers Benefits When a Supplier Deals with a Large Customer

Posted by Chris Curtin on Mar 4, 2015 in Supply Chain Financing | 0 comments |

Supply Chain Financing, or Reverse Factoring,  Delivers Benefits When a Supplier Deals with a Large Customer

If you are a small business owner who supplies goods or services to large customers, you may be able to obtain the necessary cash flow through supply chain financing. Supply chain financing, also known as reverse factoring, is a form of factoring. Here, the high credit standing of a large purchaser is substituted for the credit rating of a supplier to achieve a lower factoring cost to the supplier. Reverse factoring is typically a three-way relationship among a supplier, a large customer, and a factoring firm. The customer in effect...

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