Offer your suppliers early/alternate payment options while extending credit period at your end. Enhance supply chain stability and foster stronger relationships.
Offer your suppliers early payment options while extending your own payment terms. Enhance supply chain stability and foster stronger relationships.
Reverse Factoring, is one of the trade financing product solution, through the M1 NXT platform and is a buyer-led trade finance solution where a buyer initiates the request for financing the payment of their suppliers' invoices. Our platform connects Buyer companies with Financiers who provide liquidity to their supply chain partners at competitive rates, based on the buyer’s creditworthiness. This trade financing solution optimizes both the buyer’s working capital by extending payment terms and the suppliers' cash flow by accelerating their receivables, fostering a healthier and more efficient global supply chain.
Invoice Value
$100,000
Advance Rate
80- 100%
Credit Period
90 Days
Borrower
Exporter
Initial Processing
Exporter shares invoice and BL with the financial institution
Financial institution verifies the documents for authenticity and compliance.
e.g. $80,000
Financial institution disburses 80–100% of the invoice value to the exporter. third step in day 0
Initial Processing
e.g. $100,000
Full invoice amount received
e.g. $19,000
Remaining balance after fees
Transaction Successfully Closed
Position your company as a supportive and responsible partner within your ecosystem.
Leveraging early payment /trade financing options can sometimes enable you to negotiate better pricing or terms with your suppliers.
Extend your credit period with suppliers while ensuring they get paid as per payment terms/early, enhancing your cash flow management and liquidity.
Foster loyalty and reliability by offering a beneficial trade financing option to your supply chain partners, ensuring their financial health and continuity of supply.
Reduce the risk of supplier distress or disruption by providing them with crucial access to affordable working capital.
Access trade financing easily through a streamlined, digital process, without needing extensive credit checks or collateral on your own part.
Benefit from a stronger, more stable business relationship with your key client due to the trade financing support provided.
Mitigate the risk of late payments or non-payment from your Buyer client
Secure immediate and reliable funding for your receivables, eliminating payment delays and improving your liquidity.
Obtain payment for your invoices at competitive rates, leveraging the credit rating of your larger corporate buyer
Access a ready pipeline of Buyer companies and their supplier networks, reducing your client acquisition costs and accelerating growth.
Access to short term trade assets backed by the strong creditworthiness of large, reputable corporate Buyers.
Broaden your participation in the lucrative supply chain finance market.
Leverage the M1 NXT platform’s digital infrastructure for streamlined onboarding, transaction journey reducing manual effort and costs.
Choosing M1 NXT for reverse factoring means leveraging a cutting-edge digital platform for seamless global trade financing solution. We provide distinct advantages for all participants:
Strengthened
Supply Chains
Support buyers in offering early payment options that empower suppliers.
Supplier
Confidence
Assured trade financing improves supplier relationships and long-term partnerships.
Efficient
Capital Use
Financing driven by buyer’s creditworthiness, not supplier’s balance sheet.
Digital
Transparency
Real-time tracking of transactions
Scalable
Solution
Suitable for corporates across industries, ensuring flexibility and growth.
Proven
Credibility
Built on M1NXT group companies' trusted ecosystem of financiers and corporates.
Unlike traditional factoring, which is supplier-driven , Reverse Factoring is buyer-led . It allows the Buyer company to facilitate early payment to their suppliers at competitive rates, leveraging the Buyer’s stronger credit rating to benefit their entire supply chain.
For Buyer companies, Reverse Factoring enables the extension of their own payment credit period while simultaneously supporting their suppliers with early cash flow. This optimises the Buyer’s working capital, improves cash flow forecasting, and significantly strengthens vital supplier relationships, leading to a more resilient supply chain.
Once an invoice is approved by the Buyer and the supplier opts for payment through the M1 NXT platform, funding can be disbursed rapidly by the financier. This often means suppliers receive payment significantly earlier than their standard credit terms, enhancing their liquidity.
M1 NXT's platform is designed to handle cross-border transactions. Our Reverse Factoring solution caters to international supply chains, facilitating payments to overseas suppliers.
