Reverse factoring pertains to financing invoices from suppliers (financing obligations).

This service allows the supplier to receive full payment for the amount indicated on an invoice (100%) from the factor while the recipient receives a prolonged payment term, usually an additional 30-60 days from payment deadline. Depending on the factor, the extension is either counted from day of payment (day money is transferred to supplier?s account) or from the day the amount becomes due.

Supplier factoring can be carried out both in the case of domestic suppliers and in the case of suppliers with company headquarters abroad.