Ideal for large buyers: Increase purchases volume with Omnifactor!
- Managing large buyer ‘s (Customer’s) liabilities to the suppliers, arisen on account of deliveries of goods or services
- Taking over by the Omnifactor the risk of Customer receivables payment default
- Financing the Customer’s suppliers based on acquired receivables
- Financing the Customer after the receivables due and payable date
The buyer of receivables is Omnifactor; which suppliers are included in the scheme is agreed upon jointly by you the Customer and Omnifactor.
How does Reverse Factoring work?
The Customer concludes a framework agreement with Omnifactor, in which the latter agrees to purchase and pre-finance current receivables of predefined suppliers against the Customer.
The respective supplier and Omnifactor sign a simplified factoring agreement relating only to receivables made due to the Customer.
When the goods have been delivered and an invoice has been issued by the supplier, the invoice data are checked by the Customer, who then sends these details, along with a confirmation of payment, to Omnifactor.
The receivable is purchased by Omnifactor after the confirmation of delivery and payment has been received.
The confirmed amount of the receivable is paid onto the bank account of the supplier.
The Customer pays the invoice amount to Omnifactor by the agreed date.
- Optimization of working capital due to immediate financing of payables to the suppliers involved
- 100% coverage of the default risk for the selected suppliers towards Customer
What effect does reverse factoring have for you?
- The Customer obtains preferential conditions from the selected suppliers
- Full protection of the suppliers involved against defaulted receivables
- Extended payment terms
- Utilization of supplier discount
What details are required?
The specific costs are calculated using the following data:
- Annual purchasing volume
- Number of suppliers and invoices per year
- Average amount of receivables and payment terms per supplier
- Annual financial statements
Who can use it?
Customers meeting the following criteria:
- Excellent creditworthiness
- Minimum EUR 100,000 in total purchasing volume of business of the Customer and suppliers involved
- Maximum 180 days credit granted to the Customer
- The receivables made out to the Customer by the participant suppliers only for goods and services that have fully been delivered or rendered
What does reverse factoring cost?
- The volume of bookkeeping data to be processed and the payment terms are the key elements determining the price
- The Customer pays standard debit interests for the period between receivables purchase and payment
Omnifactor offers a unique balance of size, flexibility and personal commitment. Backed by the strength and liquidity of our partner financial institutions, we’re able to help you and your suppliers.