PRODUCTS
It is a financing solution where the financing organization takes over the receivables of goods, products, and services from the supplier and transfers the payment to the supplier. Receivables financing consists of the following steps:
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Request from Supplier for financing (offer to banks to purchase their receivables from Buyer);
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Banks and financial institutions will transfer the payment (less the factoring fee) to the Supplier;
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Buyer will pay the full payment amount to banks and financial institutions when the receivables are due according to the contract.
It is a financing solution that buyer requests a third party financial institution to pay the supplier according to the payable schedule. The supplier will receives the payment directly from the financial institution earlier than its invoice term. Reverse factoring:
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Supplier makes a request;
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Buyer must agree (confirm);
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Bank and other financial institutions transfer the (discounted) payment to the Supplier;
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Buyer will pay the full payment amount to banks and financial institutions when the receivables are due according to the contract.
