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Reverse Factoring Reverse Factoring

Reverse factoring, also known as supply chain financing, is a financing solution designed to help your company meet its payment obligations towards its suppliers. Also, it is a way for your company to build an image of a reliable business partner and take advantage of rebates offered by your suppliers in exchange for early payment.

How it works

Reverse factoring is a solution through which a factoring company finances its client’s payment obligations towards suppliers. Based on article 518 paragraph 1 of the Polish Civil Code, factor assumes rights to receivables by settling the debt owed by a client to his suppliers. Factor thus becomes his client’s creditor of and assumes rights to receivables up to the amount of the payment made in the name of his client. The client is obligated to reimburse factor the amount of receivables paid.


  • No need for buyers to concede to the assignment of debt to a factor.
  • No need to evaluate sales agreements. Factor assumes rights to receivables at a moment when he makes a payment into a supplier’s (creditor’s) account.
  • Reverse factoring eliminates the risk of a dispute arising between the company and its suppliers concerning damaged goods, warranty, as well as other claims between the parties. By agreeing to payments to be made to its suppliers, the company confirms correctness of receivables and lack of mutual claims. This form of financing suppliers is also convenient for businesses using credit insurance, as the factor eliminates risks not covered under an insurance policy.

Who is eligible

  • Businesses which need assistance in managing their payment obligations towards suppliers.
  • Companies which want to build a stable supply chain.
  • Businesses which want to take advantage of discounts offered by suppliers in exchange for early payment.
  • Companies with annual income exceeding PLN 15 million.

Contact Us

Kuke finance - kontakt

+48 22 233 07 08

Kuke finance - kontakt

Kuke finance - kontakt

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