Overview

Reverse Factoring provides suppliers/vendors of a corporate with a digital, seamless, off-balance sheet solution. The Buyer accepts invoices and transmits them to Axis Bank who early pays the Vendors. This product structure is under the Factoring regulations.

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Features &
Benefits

Features & Benefits

  • Features :
  • imgDigitally straight through process of supplier onboarding
  • imgAPI enabled communication with Corporate ERP

  • Benefits to Corporate :
  • imgOperational efficiency delivered through consolidation of payment process
  • imgNo change in books of account- remains trade payables
  • imgAbility to get extended credit period
  • imgScope of garnering cash discount from supplier and reduce procurement cost

  • Benefits to Vendors :
  • imgImproves cash flow and liquidity position of Vendors
  • imgScope for turnover improvement for Vendors
  • imgCompetitive pricing linked to buyer ratings lowers the financing cost for vendor
  • imgLimited documentation

How it works?

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Bank sets up an arrangement for Corporate
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Vendor sells goods/renders services and raises invoice for supplies
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Corporate transmits accepted invoices to Axis Bank
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Axis Bank remits the proceeds to Vendor’s working capital account
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Corporate pays Axis Bank on due date

Disclaimer:

Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion