What Is Reverse Factoring?

Reverse factoring is a financing solution that allows businesses to pay suppliers early, leveraging third-party funding to cover supplier invoices without impacting their own cash flow. With reverse factoring, a financing provider, like Tupel, advances the payment to your supplier, allowing you to benefit from early payment discounts or meet supplier terms without using internal funds. You then repay the financing provider later, typically after selling the goods, ensuring smoother cash flow management and stronger supplier relationships.