There are two primary types of supply chain financing: 1. Factoring of Receivables (not guaranteed by buyer) 2. Reversed Factoring of Receivables (guaranteed by buyer). Both approaches enable businesses to achieve discounts on purchases, while helping ensure the financial viability of their suppliers through timely payment.
It is not uncommon for businesses to earn cash-back rebates on 30 percent of their spending. In some cases, the cash-back rebates earned by businesses have single handedly transformed their accounts payable department into a profit center. The money earned through virtual card rebates also can provide an accounts payable department with the capital to automate invoice processing.