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Supply Chain Finance / Reverse Factoring

Finance suppliers based on buyer creditworthiness. Suppliers get early payment; buyers extend terms.

Trade Finance
Complexity
Intermediate
Deal Size
$10M - $500M
Typical Tenor
60 days
Scalability
Very High
#trade-finance#working-capital#scf#sme#payables
Mini Map

Flow Types

Cash
Securities
Receivables

Transaction Timeline

Phase 1: Invoice Confirmation(T+0 to T+5)

Supplier delivers goods, buyer confirms invoice on platform.

Use Cases

  • •Optimize working capital for large corporates
  • •Provide liquidity to supplier ecosystems
  • •Strengthen supply chain relationships
  • •DFI mandate to support SME suppliers

Problem Solved

Suppliers get faster payment at lower cost (based on buyer credit). Buyers can extend payment terms.

Revenue Calculator

Model deal economics

$50M
$10M$500M
55 bps
5 bps200 bps
10 bps
0 bps

Projected Revenue

Gross Carry Income$137,500
Funding Cost($25,000)
Net Carry$112,500
Upfront Fees$0
Total Revenue$112,500
Annualized Return
45.0 bps
If Repeated Annually
$225,000

Revenue Sources

Carry Income

Discount Income30-80 bps

Spread between payment to supplier and collection from buyer

Per Transaction

Fee Income

Platform Fee
10-25 bps

Annual fee for SCF platform access

Regulatory Checkpoints

True Sale to SupplierIFRS 9

Transaction structure affects derecognition treatment.

Risk Flags

Buyer ConcentrationHigh

Heavy exposure to single anchor buyer.

Mitigation:Diversify across multiple buyers, credit limits.
Dilution RiskMedium

Invoice disputes or returns reduce collectible amount.

Mitigation:Only finance confirmed payables, dispute mechanisms.