Reverse Factoring provides suppliers/vendors of a corporate with a digital, seamless, off-balance sheet solution. The Buyer accepts invoices and transmits them to Axis Bank who early pays the Vendors. This product structure is under the Factoring regulations.


Features &

Features & Benefits

  • Features :
  • imgDigitally straight through process of supplier onboarding
  • imgAPI enabled communication with Corporate ERP

  • Benefits to Corporate :
  • imgOperational efficiency delivered through consolidation of payment process
  • imgNo change in books of account- remains trade payables
  • imgAbility to get extended credit period
  • imgScope of garnering cash discount from supplier and reduce procurement cost

  • Benefits to Vendors :
  • imgImproves cash flow and liquidity position of Vendors
  • imgScope for turnover improvement for Vendors
  • imgCompetitive pricing linked to buyer ratings lowers the financing cost for vendor
  • imgLimited documentation

How it works?

Bank sets up an arrangement for Corporate
Vendor sells goods/renders services and raises invoice for supplies
Corporate transmits accepted invoices to Axis Bank
Axis Bank remits the proceeds to Vendor’s working capital account
Corporate pays Axis Bank on due date


Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion