Reverse Factoring

LIABILITY management

Areas of intervention

Debts vs Suppliers

Reverse Factoring is a service that originates from an previous agreement between BPER Factor and a medium-large sized company (the buyer) with a plurality of suppliers. Thanks to this agreement, suppliers can access dedicated lines of credit under preferential terms and conditions.
This operation entails close collaboration with the agreed buyer, both in the service's promotion phase with the suppliers, and in the subsequent operational phase(s) which must allow for a constant exchange of information on the status of the assigned receivables and the supply relationships.
To suppliers who request it, the agreement can also provide for the possibility of guaranteeing the buyer's solvency (without recourse).
By applying the maturity value formula, BPER Factor pays suppliers at the receivables' maturity date and also grants a further payment extension period to the buyer, effectively transforming their supply debt into an alternative financing source.

Product Purpose

BUYER

- Support the supply chain by facilitating access to credit
- Expand negotiations concerning purchasing
- Grant the possibility of deferring invoice payments
- Rationalize and reorder liquidity

SUPPLIERS

- Optimize cash flows with the immediate and definitive collection of receivables and the consequent improvement of financial statements
- Avoid using bank lines of credit
- Have fast access to credit
- Have privileged economic conditions

Costs

The factoring service has two main expenses (in addition to miscellaneous expenses): an interest rate applied to any advance payment made and a Factoring commission applied based on the amount of assigned receivables. Its size varies based on the service used (i.e. with or without a guarantee), the type of receivables (e.g. sector, payment schedule, deferral length, etc.), the operation amount, and the solvency of the parties involved.

Download the pdf version of the service

BPER Factor - Reverse Factoring