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.

Reverse factoring differs from traditional factoring in that it is the buyer, not the supplier who initiates the funding. It is designed to provide value to all three parties involved: The buyer, the supplier and the funding facility.

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.

The factoring company creates a more durable business relationship, as all parties benefit. When working with large ordering companies, they are also able to reach suppliers more easily than reaching out to each supplier company individually.

As a specialist and experienced invoice finance broker, we can help businesses to secure the most suitable factoring facilities for their requirements. Call our team of reverse factoring experts on 0800 9774833 to find out how we can help, or get an instant quote using the tool below:

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
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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 request a call back at a more convenient time to discuss your requirements and discover how we can add value to your search.

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

Some of the funders we work with

  • Peak Cashflow
  • FIBR Tech Limited
  • InvoCap
  • Bibby Financial Services
  • Santander Corporate & Commercial
  • Boost Capital
  • Accelerated Payments
  • Barclays
  • Regency Factors
  • iwoca
  • inFund
  • Trade Finance Partners
  • Woodsford Tradebridge
  • Time Finance
  • Berkeley Trade Finance Ltd
  • Davenham Trade Finance
  • Partnership Invoice Finance
  • Pulse Cashflow Finance
  • Leumi ABL
  • PNC Business Credit
  • Team Factors
  • Giant
  • Ultimate Finance Group
  • Optimum Finance
  • Close Brothers Invoice Finance
  • Metro Bank SME Finance
  • Investec
  • MarketFinance
  • Roma Finance
  • Haydock Finance Ltd
  • Secure Trust Bank
  • IGF Invoice Finance
  • Shawbrook Business Credit
  • Asset Advantage
  • Lloyds Bank Commercial Finance
  • Davenham Asset Finance
  • ABN AMRO Commercial Finance
  • Skipton Business Finance
  • Creative Capital
  • Merchant Money
  • Sonovate
  • 4Syte
  • Blazehill Capital
  • MaxCap
  • Royal Bank of Scotland
  • Aldermore Invoice Finance
  • Nucleus Commercial Finance
  • Clear Factor

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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