What is reverse factoring (supply chain finance)?

Reverse Factoring (Supply Chain Finance): A program the buyer sets up so their suppliers can get paid early at the buyer's credit rate.

How it works

Large OEMs and retailers sponsor supply-chain finance platforms (Taulia, PrimeRevenue, C2FO) that let you take early payment on invoices at a discount tied to the buyer's rate—often cheaper than traditional factoring for that customer's invoices.

Where you will run into it

Reverse Factoring (Supply Chain Finance) comes up most often in invoice factoring conversations. See how invoice factoring works, including real cost ranges and timelines.

Reverse Factoring (Supply Chain Finance) questions

A program the buyer sets up so their suppliers can get paid early at the buyer's credit rate.

Large OEMs and retailers sponsor supply-chain finance platforms (Taulia, PrimeRevenue, C2FO) that let you take early payment on invoices at a discount tied to the buyer's rate—often cheaper than traditional factoring for that customer's invoices.

Free PDF

Funding Requirements Checklist for US manufacturers

See exactly what underwriters actually look at for factoring, PO financing, equipment, working capital, ABL, and SBA before you fill out a single application

  • What documents you need for each program
  • Typical time-to-fund by program
  • Common disqualifiers worth knowing up front
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3-page PDF · Manufactor Finance charges you no application, origination, or closing fees. In most states, funding partners pay us when an account funds or activates; in California and Missouri they pay a fixed fee per inquiry whether or not you are funded. You pay us nothing either way. · We're an independent referral service, not a bank.
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