Reverse Factoring
Win-win situation for customer and supplier
Supply chain management is an important part of your company strategy. We show you how cost-effective financing for your suppliers can be effectively combined with the optimization of your own working capital.
Eurofactor Reverse is a "reverse" factoring process. The initiator is not the supplier of goods or services, but you as a highly credit-worthy account debtor.
How does it work?
- We sign a master agreement with you as the account debtor of your suppliers. In this contract, Eurofactor obligates itself to purchase and pre-finance continually your suppliers' receivables from you.
- With your suppliers, we sign simplified factoring contracts that only include receivables from you. The number of suppliers included can be adjusted according to your individual wishes. Of course it is also possible to include foreign suppliers.
- Based on the factoring contract, the supplier receives up to 100 percent of the receivables amount after they are purchased by Eurofactor.
- You pay your "supplier payables" to Eurofactor within the payment terms established between you and the suppliers. The management of day-to-day supplier relationships is not affected by reverse factoring.
Advantages for the account debtor (initiator)
- Extended payment terms for your supplier payables.
- Expansion of your purchasing capacity.
- Improved purchasing conditions.
- Relationships with strategically important suppliers.
Advantages for the supplier
- Up to 100 percent instant liquidity through pre-financing of receivables.
- Increased sales potential.
- Protection against bad debts.
- Lower financing costs.
Contact one of our sales managers. He will discuss your reverse factoring opportunities and options with you.