SupplierPlus - Seamless Working Capital
Buyer has full control over the implementation of the SCF program, selecting suitable Creditors and Suppliers to participate in the structure;
The financing cost to the Suppliers is based on the credit risk of the larger Buyer, resulting in competitive rates.
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Reverse factoring is easy on the balance sheet:
For buyers, the claims remain as a trade payable, creating no loan obligations;
For suppliers, early payment is treated as a final settlement instead of an outstanding factoring liability;
Suppliers are not subjected to any credit analysis, so easy and instant funding is available to practically all suppliers;
SCF program can rely on one or more independent financiers, leaving both the supplier's and the buyer’s existing bank relationships unaffected;
For buyers, a well-implemented reverse factoring program helps streamline factoring approvals and payment procedures for higher efficiency.