Reverse Factoring

ZuronReverse Factoring

Reverse Factoring

Approved Payables or Reverse Factoring is a buyer-led supply chain finance mechanism where the suppliers of that buyer get an access to early funds.

In this financial mechanism, the financial institutions provide credits to the suppliers without any checking, it is done on the credibility and credit worthiness of the buyer.

Sellers get access to various types of funds from the institutions, like low-cost working capital, without any major obligations in their financials.

Process Flow:

  1. 1In case of a semi-automatic mechanism, the buyer needs to upload the approved invoices of the seller on Zuron’s platform. If the participant opts for a fully automatic system, then it fetches all the details of the invoices from the buyer's ERP automatically.
  2. 2After checking the sanction terms and conditions, the intelligent system automatically shares the invoice details with the financial institutions where the final disbursement amount is auto calculated
  3. 3With the pre-verified details of the seller and buyer available on the system, the financial institution quickly releases funds to the seller
  4. 4According to the pre-agreed sanctioned terms and conditions, the seller either receives the full payment of the invoice or the amount after the upfront deduction of the interest
  5. 5According to the agreed mutual terms and conditions, the buyer releases the payment within the due date
  6. 6In case of payment delay from the due date, penal interest charges are levied on the buyer or seller according to the sanctioned terms and conditions of the financial institution

Distinctive Features

Auto-financing flexibility

On the seller's confirmation, the approved invoices are uploaded to the buyer’s ERP system, and intimate payment requests automatically

Flexible Due Date

For credit period extension by the buyer, they can avail of the facility through Zuron’s reverse factoring feature.

Bespoke Interest Parameters

Based on the requirements, interest parameters can be customized for Interest Bearing entities, Interest Collection, Sharing Interest between Buyer and Seller), Interest posting intervals and more

Customized reporting system

Enjoy the flexibility to customize the reports and dashboards according to your need on Overdue invoices, Interest accrual, utilization of limits, and more