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Reverse factoring

Managing your own business is fun, challenging and sometimes exciting. But how nice it seems to you to be involved in the developments of your company, without having to worry about your credit management. You can go all out to grow your business, but you don't have to worry if and when the invoice will be paid. This is arranged with factoring . How it works? We are happy to tell you that. We'll cover reverse factoring here : what is reverse factoring? How does reverse factoring work, its differences from other types of factoring and the pros and cons of reverse factoring.

Reverse factoring meaning

What is Reverse Factoring? Reverse factoring works differently from other types of factoring. Unlike traditional factoring and American factoring , reverse factoring looks at the customer. The debtor (your customer) initiates this financing solution. This gives the customer more time to pay an invoice. And you have more certainty that it will actually be paid. To combat non-payment, reverse factoring only works with truly approved invoices. The risk lies with the factoring company and not with you. The costs are lower with reverse factoring, because there are only approved invoices. The costs lie with the supplier and are between 2 and 4 percent.

The difference between reverse factoring and other types of factoring

The biggest difference lies in the fact that reverse factoring looks at the customer, at his creditworthiness. American factoring and traditional factoring look at your business. Just like with American factoring, the risk with reverse factoring is not with you, but with the factoring companies. Reverse factoring, like traditional factoring, is particularly suitable for large companies. What is striking is that reverse factoring, like American factoring, pays 100 percent within 24 hours, but has a low fee.

Advantages and disadvantages of reverse factoring

Just like any factoring, reverse factoring has its advantages and disadvantages. Below you can see them in more detail.


  • 100% paid out immediately;
  • The costs are relatively low;
  • The risk is not yours;
  • Creditworthiness of the customer is important.


  • The debtor must be willing to cooperate;
  • Only for larger companies.


  • 100% paid out immediately, minus a small fee;
  • The creditworthiness of the debtor is considered;
  • Non-payment is prevented by approved invoices;
  • Risk is not yours;
  • Your customer receives more working capital, his invoices are pre-financed;
  • Suitable for SMEs and large companies.

Providers compare

Before you choose a factoring company, it is smart to request several quotes from different factoring companies. Fortunately, this is possible on our website. You choose which reverse factoring suits you. We give you an overview of the providers that may suit you best.


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