Reverse factoring—a financial arrangement where a corporation facilitates early payment of its trade credit obligations … explore the following question: what extensions of payment terms allow the supplier to benefit from reverse factoring? We …

literature, the authors construct a model of market dynamics for reverse factoring, a specific type of SCF arrangement. The … authors assume that firms’ participation in a reverse factoring arrangement is determined by the direct benefits they can … capital goals. The authors find that reverse factoring can yield direct benefits for all supply chain participants, but that …