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Reverse Factoring

Reverse factoring provides a corporation's suppliers/vendors with a digital, seamless, off-balance sheet solution. The buyer accepts invoices and transmits them to Axis Bank, which facilitates early payment to the vendors. This product structure is subject to factoring regulations.

Features & Benefits

Supplier onboarding

Digitally straight-through process of supplier onboarding.

API-enabled communication

API-enabled communication with corporate ERP.

Efficient payment process

Operational efficiency delivered through consolidation of the payment process.

Trade payable continuity

No change in books of account- remains trade payables.

Credit extension

Ability to get extended credit period.

Cost-saving opportunities

Scope of garnering cash discounts from suppliers and reducing procurement cost.

Cash flow improvement

Improves cash flow and liquidity position of vendors.

Vendor turnover boost

Scope for turnover improvement for vendors.

Better vendor financing

Competitive pricing linked to buyer ratings lowers the financing cost for the vendor.

Easy documentation

Limited documentation

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How it works?

  • 01

    Axis Bank sets up an arrangement for the corporates

  • 02

    Vendor sells goods, renders services and raises invoices for supplies.

  • 03

    Corporate transmits accepted invoices to Axis Bank.

  • 04

    Axis Bank remits the proceeds to the vendor’s working capital account.

  • 05

    Corporate pays Axis Bank on the due date.

Disclaimer

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

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