Reverse Factoring

What is Reverse Factoring?

Also known as supply chain finance or supplier finance, reverse factoring involves a funder advancing payment to its clients’ suppliers at an accelerated rate, giving both parties a number of benefits.

The supplier, for instance, can trade with customers that demand longer payment terms than normal without tying up cash flow for long periods, accessing up to 100% of the invoice value well in advance of its due date.

The buyer, meanwhile, can take advantage of early settlement discounts and foster strong relationships with their suppliers.

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How does reverse factoring work?

  1. A business orders goods from their supplier
  2. The goods are sent and an invoice is sent to the customer
  3. The customer approves the invoice and sends it to the reverse factoring provider
  4. The invoice value is advanced to the supplier
  5. The customer pays the invoice value to the funder when it becomes due

How Hilton-Baird can help

As an independent commercial finance broker that specialises in asset based finance, we have access to the leading factoring companies on the market to ensure you can secure the most suitable facility.

Call our team on 0800 9774833 or email info@hiltonbaird.co.uk for more information about how we can assist.

I was offered a variety of factoring services by Hilton-Baird, and after consultation over the right one for me I chose the one that was the most personal, informative and friendly.

Neal Warcup, Managing Director, Polar Recruitment

Funders we work with

  • Close Brothers Invoice Finance
  • Nucleus Commercial Finance
  • Working Capital Partners
  • Ashley Commercial Finance
  • Santander Corporate & Commercial
  • Everline
  • GapCap Cashflow Finance
  • Calverton Finance
  • Roma Finance
  • ABN AMRO Commercial Finance
  • Trade Finance Partners
  • Davenham Trade Finance
  • IGF Invoice Finance
  • Platform Black
  • 1pm
  • GE Capital
  • iwoca
  • Aldermore Invoice Finance
  • Shawbrook Business Credit
  • Assetz Capital
  • Secure Trust Bank
  • Hitachi Capital Invoice Finance
  • Royal Bank of Scotland
  • Skipton Business Finance
  • Positive Cashflow Finance
  • Catalyst Finance
  • Market Invoice
  • Creative Capital
  • Pulse Cashflow Finance
  • Metro Bank SME Finance
  • Bibby Financial Services
  • First Capital Factors
  • Davenham Asset Finance
  • PNC Business Credit
  • Invoice Cycle
  • Partnership Invoice Finance
  • Team Factors
  • Innovation Finance
  • Barclays
  • Asset Advantage
  • Regency Factors
  • Lloyds Bank Commercial Finance
  • Woodsford Tradebridge
  • Ultimate Finance Group
  • Outsauce
  • Factor 21
  • Leumi ABL

Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders

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