REVERSE-FACTORING

WIN-WIN SITUATION FOR ALL PARTIES

As a wholesale customer, your interest lies in binding strategic suppliers to you in the long term and being granted the best possible payment terms.

BNP Paribas Factor offers Reverse-Factoring solutions to meet this requirement. ("Reverse" in this context refers to the transfer of the factoring idea to the procurement side of the company or its supplier relationships.) In the case of Reverse-Factoring, a contract between the wholesale customer and BNP Paribas Factor is concluded as well as a contractual agreement with the suppliers. The suppliers will continue to issue their invoices and confirm their correctness. As a result, 100% of the invoice amount will be immediately transferred from BNP Paribas Factor to the suppliers. They will pay BNP Paribas Factor at maturity date.

You can use extended payment terms; Your suppliers still have immediate liquidity inflows. Cash discounts can be used on both sides. Reverse-Factoring leads to a strengthening of relations with suppliers, and secures the supply of important precursors.

ADVANTAGES AT A GLANCE

Suppliers:

• Immediate liquidity and turnover-congruent financing of 100% of receivables
• 100% risk coverage against default on receivables
• Improved equity ratio through the sale of receivables as a result of possible reduction of balance sheet (Basel II)

Customers (cooperation partner):

• Strategic supplier relationship
• Additional liquidity by taking advantage of long payment terms
• Product and material availability
• Transparency of payment flows
• Optimisation of working capital
• Establishment of competitive advantages

See our explanation video for “Reverse-Factoring”.