Offer your suppliers early payment options while extending your own payment terms. Enhance supply chain stability and foster stronger relationships.
Invoice Value
$100,000
Advance Rate
80- 100%
Credit Period
90 Days
Borrower
Exporter
Initial Processing
Exporter shares invoice and BL with the financial institution
Financial institution verifies the documents for authenticity and compliance.
e.g. $80,000
Financial institution disburses 80–100% of the invoice value to the exporter. third step in day 0
Initial Processing
e.g. $100,000
Full invoice amount received
e.g. $19,000
Remaining balance after fees
Transaction Successfully Closed
Mitigate the risk of late payments or non-payment from your Anchor client, as the financier ensures timely settlement.
Secure immediate and reliable funding for your receivables, eliminating payment delays and improving your liquidity.
Obtain early payment for your invoices at competitive rates, leveraging the credit rating of your larger corporate buyer (Anchor)
Build stronger, more reliable relationships with your overseas suppliers by ensuring prompt payment, fostering trust and preferred treatment.
Gain the ability to negotiate more favourable, longer payment terms with international suppliers, improving your cash cycle and financial flexibility.
Access financing to settle supplier payments, preserving your own cash reserves and ensuring consistent liquidity for your business operations.
Gain exposure to a wide range of suppliers and industries linked to strong Anchor companies, spreading your risk.
Broaden your participation in the lucrative supply chain finance market with a structured and secure product.
Invest in a diversified portfolio of receivables backed by the strong creditworthiness of large, reputable corporate Anchors.
Choosing M1 NXT for reverse factoring means leveraging a cutting-edge digital platform specifically engineered for seamless global supply chain finance. We provide distinct advantages for all participants:
Strengthened
supply chains
Support buyers in offering early payment options that empower suppliers.
Supplier
confidence
Assured financing improves vendor relationships and long-term partnerships.
Efficient
capital use
Financing driven by buyer’s creditworthiness, not supplier’s balance sheet.
Digital
transparency
Real-time tracking of transactions and settlements for all stakeholders.
Scalable
solution
Suitable for corporates across industries, ensuring flexibility and growth.
Proven
credibility
Built on M1nxt group companies' trusted ecosystem of financiers and corporates.
Unlike traditional factoring, which is supplier-driven and based on the supplier's creditworthiness, Reverse Factoring is buyer-led (Anchor-driven). It allows the Anchor company to facilitate early payment to their suppliers at competitive rates, leveraging the Anchor's stronger credit rating to benefit their entire supply chain.
For Anchor companies, Reverse Factoring enables the extension of their own payment terms while simultaneously supporting their suppliers with early cash flow. This optimises the Anchor's working capital, improves cash flow forecasting, and significantly strengthens vital supplier relationships, leading to a more resilient supply chain.
Once an invoice is approved by the Anchor and the supplier opts for early payment through the M1 NXT platform, funding can be disbursed rapidly by the financier. This often means suppliers receive payment significantly earlier than their standard credit terms, enhancing their liquidity.
Absolutely. M1 NXT's platform is specifically designed to handle cross-border transactions. Our Reverse Factoring solution caters to international supply chains, facilitating early payments to overseas suppliers and enabling multi-currency transactions, which helps manage foreign exchange risk for all parties.
