Results for tag: "Reverse Factoring"

Reverse factoring, also known as supply chain financing, is a financial arrangement that allows a business to optimize its working capital and improve liquidity. This form of financing involves a third-party financier – typically a financial institution – who agrees to pay the company's invoices to suppliers at an accelerated rate in exchange for a discount. The company then repays the financier according to the original payment terms of the invoice, which are often longer. This provides suppliers with quicker access to cash and reduces the credit risk, as the financing is based on the creditworthiness of the larger company. It is particularly beneficial for small and medium-sized enterprises (SMEs) that need to finance their receivables. Reverse factoring as a financial instrument has gained popularity in the finance market, as it strengthens the supply chain and offers flexible liquidity options for businesses. A number of companies offer reverse factoring or supply chain financing services in the market. Some of these include Taulia Inc, PrimeRevenue, Orbian, Greensill Capital (now defunct), and Citibank's Citi Supplier Finance. Additionally, financial software providers like SAP Ariba have also incorporated reverse factoring solutions into their product portfolios to facilitate efficient financial transactions between buyers and suppliers. Show Less Read more