Reverse Factoring / Supply-Chain Finance

What is it?

DirectLenderMatch classifies Reverse Factoring / Supply-Chain Finance under the financing form “Receivables purchase/program.” Its typical use in this directory is: Supplier receives early payment based on buyer credit.

How does it work?

The structure is generally evaluated, supported, or secured using the following basis: Approved buyer payables. Exact underwriting, eligibility, terms, and availability are provider-specific and can change.

What can it be used for?

Supplier receives early payment based on buyer credit.

What backs or supports it?

Approved buyer payables.

Why does this structure exist?

This structure provides a defined way to address the financing need described above. The provider, transaction, collateral, and underwriting context determine how the structure is implemented in practice.

Important considerations

Confirm current costs, risks, licensing, eligibility, collateral treatment, recourse, tax consequences, and availability directly with the provider and appropriate professional advisers. DirectLenderMatch does not compare rates or recommend products.

Is this actually a loan?

Financing, not a conventional loan

Workbook classification: No. Financing forms such as leases, purchases, shared equity, advances, and guarantees may solve a funding need without being conventional loans.

Verified lenders or providers

Direct bank supply-chain-finance provider

Citi

Citi currently provides Supplier Finance / Trade Payables Finance that accelerates supplier payment while supporting buyer working-capital objectives.

Official evidence page →

Last verified: 2026-08-23

Direct supply-chain finance provider

Wells Fargo

Wells Fargo currently documents trade and supply-chain financing.

Official evidence page →

Last verified: 2026-08-23