The Loan Frame Factoring & Reverse Factoring Advantage
- Customized, flexible financing solutions
- Multi-lender network to avoid the hassle of negotiation with individual lenders
- Fastest TAT, best rates
- Quick digital supplier onboarding and minimal documentation
- Digital Supply Chain Finance platform and customized, real-time MIS for all stakeholders
- Seamless ERP integration and automated payment reconciliations
- Maker checker mechanisms and high data security
How Factoring works with Loan Frame
Step 1
Raise invoices for goods or services provided Step 2
Receive up to 90% of the invoice value instantly from Loan Frame lending partner Step 3
Loan Frame’s lending partner collects payments from your customers Step 4
Once payments are made, receive the remaining balance minus an agreed fee
Your supplier uploads the invoice with a future payment due date on the Loan Frame platform Step 2
You approve the invoice and confirm transaction details Step 3
The supplier requests early payment on the approved invoice through the platform Step 4
The supplier receives payment, minus the agreed fee, and you settle the invoice on the due date.Benefits of Factoring & Reverse Factoring with Loan Frame
- Enhanced Working Capital: Improve cash flow and extend days payable outstanding (DPO) without affecting supplier cash flow
- Stronger Supplier Relationships: Build better supplier connections with early payments, minimizing disruptions and ensuring reliable order fulfillment
- Better Negotiation Leverage: Gain an edge in supplier negotiations by offering reverse factoring solutions
- Improved Financial Profile: Reduce financial risk and enhance liquidity with off-book supplier financing, preserving your corporate debt profile
- ERP Integration: Automate and digitize the financing process to eliminate errors, trigger financing, and post transactions into accounting ledgers seamlessly
- Real-time MIS: Make data-driven decisions with real-time, 360° insights into supplier finances, performance, transaction history, and cash flow
- Outsourced Payment Collections: Shift invoice collections to the factor, allowing your team to focus on core business activities
Factoring & Reverse Factoring : FAQs
Factoring involves selling your outstanding invoices to a third party for immediate cash, allowing you to improve cash flow and access working capital quickly.
Reverse factoring allows suppliers to receive early payment on approved invoices, helping maintain cash flow while extending payment terms for buyers.
Both solutions enhance working capital, reduce supply chain disruptions, strengthen supplier relationships, and provide flexible financing options.
With factoring, funds can be accessed immediately after selling invoices, while reverse factoring allows suppliers to receive early payments shortly after invoice approval.
No, if you choose to include your suppliers as borrowers, the financing will be an off-balance sheet liquidity source for you. This means it won't impact your corporate debt profile, allowing you to optimize cash flow without reflecting the financing as a liability on your balance sheet.
Yes, fees may apply based on the agreements made with the Loan Frame factoring partner, which can vary depending on the service used.
We offer both financial-based solutions for higher ticket-sized loans and simplified options for smaller borrowers using KYC, banking, and GST data. The specific documents required may vary based on the nature of your business and the financing solution you seek. Typically, you'll need to provide business financial statements, trade references, KYC documents, and other relevant financial information. For a detailed list of the required documents, please reach out to us directly.
Yes, Loan Frame takes the security of our clients' financial transactions very seriously. We utilize the latest encryption and security protocols to ensure that your data and transactions are always protected.
Absolutely. Loan Frame prioritizes the security and confidentiality of your data. We use advanced encryption protocols, secure servers, and comply with industry-standard data protection regulations to ensure that your information remains safe. Our platform is designed with multiple layers of security, including user authentication, real-time monitoring, and regular security audits, providing you with peace of mind that your data is always protected.
Absolutely. Loan Frame upholds strict confidentiality protocols to protect your business's sensitive financial information. We ensure that any data shared with us is kept secure and used solely for the purpose of providing you with our financial services.
No, Loan Frame offers unsecured business loans for supply chain finance, meaning you can access funding without pledging any collateral. Our solutions are designed to provide fast, flexible financing, helping businesses maintain smooth operations and grow without the need for asset-based security. Click here to learn more.
Getting started is simple. Reach out to Loan Frame through our website or contact our support team. Our experts will guide you through the onboarding process, integrating your suppliers into the platform, and setting up your tailored financing solution.