Payables Finance

Thank you for visiting Fauree’s payables finance page. At Fauree, we understand the importance of maintaining strong relationships with our suppliers and are committed to helping them manage their cash flow and reduce reliance on traditional forms of financing. Our payables finance solution allows for early payment of agreed upon terms, providing added financial flexibility for our suppliers. We encourage you to explore this page to learn more about the program and determine if it aligns with your business needs. Our team is available to assist with any questions and to help facilitate participation in the program. We value the opportunity to work with you and hope to foster a mutually beneficial partnership.

What is Payable Financing (Reverse Factoring) &
How Does it Work?

Payable financing: Also known as Reverse factoring, is a financing solution that allows a company to pay its suppliers earlier than the agreed payment terms. It is typically offered by a financial institution or a third-party provider (Lender/Financier) who acts as an intermediary between the buyer and its suppliers.

The buyer enters into an agreement with the payable financing provider, who then contacts the company’s suppliers and offers them the option to receive their payments earlier than the agreed payment terms. The supplier can choose to accept the offer, in which case they will receive payment from the lender, who will then recover the funds from the buyer at a later date.

By participating in a payable financing solution, companies can improve their cash flow by paying their suppliers earlier than the agreed payment terms. This can be especially useful for companies that have a large number of outstanding invoices and need to manage their cash flow effectively. Payable financing can also help companies strengthen their relationships with their suppliers, as it demonstrates a commitment to meeting financial obligations and can help to build trust and goodwill. It can also help suppliers reduce their reliance on traditional forms of financing, such as bank loans.

Benefits of Payables Finance solution

Buyer Benefits

Improved cash flow

Stronger supplier relationships

Increased working capital

Greater financial flexibility

Reduced borrowing costs

For buyers, payable financing can provide improved cash flow by allowing them to pay their suppliers earlier than the agreed payment terms. This can be especially useful for companies that have a large number of outstanding invoices and need to manage their cash flow effectively. Reverse factoring can also help buyers to strengthen their relationships with their suppliers, as it demonstrates a commitment to meeting financial obligations and can help to build trust and goodwill.

Supplier Benefits

Improved cash flow

Enhanced financial stability

Reduced reliance on traditional forms of financing

Stronger relationships with buyers

Improved payment predictability

For sellers, payable financing  can provide improved cash flow by allowing them to receive payment earlier than the agreed payment terms. This can help sellers to better manage their cash flow and reduce their reliance on traditional forms of financing, such as bank loans. Reverse factoring can also enhance sellers’ financial stability and improve their payment predictability, as they will know when they can expect to receive payment from their buyers. Finally, participating in a reverse factoring program can help sellers to strengthen their relationships with their buyers and can improve their overall financial performance.

Experience the power of innovation with Fauree

Introducing Fauree, the cutting-edge supply chain platform that revolutionizes your operations. By optimizing processes, enhancing cash flow, and fostering transparency, Fauree empowers small and medium enterprises (SMEs) to compete on a global scale.

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Office C 201, Burj Daman DIFC, Dubai Phone: +971 4 7700341

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+966 11 2881111

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