Reverse Factoring
“Helping to Strengthen Supplier Deliver Capabilities to Large Companies…”
BFG, Inc. has partnered with Hitachi Capital America Corp. (HCA) to provide financing programs tailored to help strengthen supplier capabilities to large companies by allowing them to sell more products, to better meet customer needs and increased profitability. Reverse Factoring funding programs enable buyers to increase procurement, achieve safe supply and realize better terms from their base of suppliers.
How it Works
Suppliers assign customer payments to HCA, which operates without a customer guarantee. Customers merely change the payment remit address. HCA advances some portion of the invoice upfront to suppliers, with the remainder less discounts, paid when customer payment is collected by HCA. The monthly minimum funded for the rates below begin at $200K. There are no maximums.
HCA pulls payment information from sponsor portal
- APR: 4% to 7% on monthly volums of $10M to $25M+
- Advance: 90% to 99%
“Reverse Factoring” uses automation technology to make the process more efficient by using supplier IDs to access payment or inventory information contained within customer portals. “Reverse Factoring”, which is based on large volumes, can be structured by financing a pool of suppliers selling to one customer. As the monthly pool of invoices financed increases the annualized rate decreases. Lower financing rates with higher advance rates improve supplier cash flows. This is an excellent program designed for your supplier base to access affordable capital without buyer commitments.
Contact William C. Coleman, Jr, Senior Advisor at BFG, Inc. on how to initiate this extraordinary program!
William.Coleman@BFGincorporated.com or 888-242-6488
