Optimize working capital without compromising supplier relationships or disrupting your operations.
Built for navigating tight margins and extended payment cycles, this financing solution allows you to extend payment terms while giving suppliers the option to get paid early—preserving your cash flow and supporting supplier stability from invoice to settlement.
Suppliers get paid early by eCapital at a discount, helping them maintain healthy cash flow and strengthening long-term business relationships.
Automate payments, reduce administrative burden, and build a more reliable, flexible supply chain with financing that benefits both sides of the transaction.
Extend your payment terms and preserve working capital—freeing up cash for operations, growth, or investment, all without increasing your debt load.
Ideal for businesses with complex supply chains or extended payment terms, reverse factoring frees up working capital by letting you pay later—while suppliers get paid early.
Extend payment terms with suppliers while preserving working capital—giving you more flexibility to fund operations and growth.
Suppliers get paid early by eCapital, improving their cash flow and strengthening your supply chain relationships.
Reverse factoring is off-balance-sheet and non-dilutive—access working capital without increasing your debt or giving up equity.
Simplify and automate your accounts payable process, reducing administrative burden and improving efficiency.
Early payments help suppliers stay financially healthy, reducing risk of disruption across your supply chain.
Offer faster payments to suppliers in exchange for better terms, pricing, or priority service.
Reverse factoring is a financing solution that allows businesses to extend payment terms while giving their suppliers the option to get paid early by a third-party financier.
It improves your cash flow, strengthens supplier relationships, and ensures your supply chain stays resilient—without adding debt to your balance sheet.
Have more questions? Our experts are here to make funding simple, clear, and stress-free.
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Clients choose eCapital when they need an engaged, solutions-oriented, long-term credit partner with proven capacity, creativity, and continuity. Our expertise is customization—whether on a $5 million or $150 million facility, employing a meticulous, hands-on strategies.
Our tight-knit group of financing experts are agile and client-centric, yet backed by extensive resources with the scale to conquer any challenge. This means we are going to be a better credit partner through every business cycle, bringing capabilities and passion—as patient, flexible problem-solvers—other providers simply do not have. Our track record speaks for itself.
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Reverse factoring—also known as supply chain finance—is a buyer-initiated financing solution that allows suppliers to get paid early by a third-party funder, while the buyer maintains extended payment terms. It improves cash flow for both parties without adding debt to the supplier’s balance sheet.
The buyer approves supplier invoices and a third-party lender (like eCapital) pays the supplier early—usually at a small discount. The buyer then repays the lender on the extended due date. This creates a win-win: the supplier gets paid faster, and the buyer gains more time to manage cash flow.
Buyers looking to extend payment terms without harming supplier relationships
Suppliers needing faster access to working capital
Companies managing large or global supply chains with tight payment timelines
Industries like manufacturing, automotive, retail, and healthcare with high-volume procurement needs
In traditional factoring, the supplier initiates the financing and assumes responsibility. In reverse factoring, the buyer initiates the process and takes the credit risk, making it lower-risk and lower-cost for suppliers.
Generally, reverse factoring doesn’t create additional debt for the buyer. It’s often treated as a trade payable (not financial debt), depending on how it’s structured and reported.
No—reverse factoring involves coordination between the buyer, supplier, and funder. However, it’s a highly collaborative process and typically strengthens supplier relationships.
Once invoices are approved by the buyer, suppliers can often receive payment in as little as 1–3 days—sometimes even the same day.
