Invoice & debtor finance · supply chain finance
Pay suppliers earlier without paying out of your own pocket.
A buyer-led program that lets your suppliers get paid early through a financier, while you keep your standard payment terms. Strengthens supplier relationships, can earn early-payment discounts. Usually requires meaningful purchasing volume.
What it is, when it fits
Plain English, with the trade-offs.
Supply chain finance (SCF), sometimes called reverse factoring, is a buyer-initiated program that lets your suppliers receive payment earlier than your standard terms, funded by a third-party financier. You confirm an invoice is approved for payment; the financier offers to pay the supplier immediately at a small discount; you settle the financier on your normal payment date. The supplier gets early cash at a discount based on your credit (often much better than they could access independently); you keep your working capital cycle intact and often earn share of the discount. SCF strengthens supplier relationships, particularly with small suppliers who otherwise carry high working-capital cost themselves. It works best where the buyer has meaningful purchasing scale (typically $20M+ annual procurement), suppliers care about early payment, and your AP system can integrate with the financier's platform. SCF differs from invoice discounting (which is supplier-led) and from factoring (which involves invoice purchase rather than approved-invoice early payment).
Pen on a settlement document, two people deciding together.
Typical scenarios
Large retailer optimising supplier terms
Why: Wants to extend AP terms without harming suppliers.
Outcome: SCF program extends standard payment terms while offering suppliers early-payment optionality.
Manufacturer with critical small suppliers
Why: Specialised suppliers with thin balance sheets; supply continuity matters.
Outcome: SCF lets small suppliers access cheap early payment via the buyer's credit.
Government contractor smoothing sub-contractor payments
Why: Long government payment cycles; sub-contractors carry the risk.
Outcome: SCF passes through buyer credit, helping sub-contractors stay solvent across the project.
Agribusiness supporting seasonal grower payments
Why: Growers need cash at harvest; processor pays on standard terms.
Outcome: SCF gives growers harvest-time cash without the processor changing payment cycles.
Lenders for this product
Who we work with.
- Octet
- Marketlend
- Earlypay
- NAB Business
- HSBC Australia
Lender accreditation varies; not every lender is available for every deal. We pick from the panel based on your specific situation.
How it works
From brief to settlement.
- 01
Procurement profile review
We assess procurement volume, supplier mix, and the value SCF would deliver to your suppliers. Below ~$5M annual purchasing, supplier-led structures usually make more sense.
- 02
Provider shortlist
Several specialist providers cover the Australian market; the right fit depends on ERP integration, supplier geography, and program scale.
- 03
Pilot and rollout
Most programs start with a pilot on top suppliers, then expand. Typical timeline 8 to 16 weeks from agreed program to first supplier go-live.
- 04
Ongoing operation
Once live, the program runs through the financier's platform with periodic supplier onboarding additions. We support program-level renegotiation as scale grows.
Indicative pricing & terms
Ranges, not promises.
Rate range
Supplier discount fee 1 to 4% (annualised)
Loan size
Tied to buyer's purchasing volume; programs typically $20M+ annual
Term
Ongoing program
Security
Buyer's credit underwrites supplier early-payment
Indicative only; specific pricing depends on lender, security, and your business profile.
Frequently asked
Honest answers, plain English.
Supplier-led vs buyer-led programs?
Supplier-led (invoice discounting, factoring) is initiated by the supplier and based on supplier credit. Buyer-led (SCF) is initiated by the buyer and uses buyer credit, almost always cheaper for the supplier. SCF requires the buyer to set up the program first.
Onboarding cost?
Setting up an SCF program typically costs the buyer modest internal effort plus integration with the financier's platform. Direct cost to the buyer can be near zero (financier earns from the supplier discount); some programs share a small fee back to the buyer.
Discount sharing?
Some programs let the buyer share in the early-payment discount the financier earns from suppliers; this is a structural design choice and varies by program. We model both shared and non-shared structures during set-up.
Reverse factoring vs SCF, are they the same?
Yes; "reverse factoring" is the older term, "SCF" is the modern label. Substance is identical: buyer-led, approved-invoice early payment funded by a third party.
Minimum purchasing volume?
Most major programs target $20M+ annual procurement. Some specialist providers run programs from $5M; below that, supplier-led options usually make more sense.
Compatibility with existing AP systems?
Modern SCF platforms integrate with major ERP and AP systems (SAP, Oracle, NetSuite, Xero at smaller scale). Integration effort varies sharply by ERP and complexity; we factor it into the implementation timeline.
Related products
If this isn't quite the fit.
Next step
Twenty minutes, no obligation.
Tell us the shape of the deal and the timing. We'll send a lender shortlist for supply chain finance or, if it isn't the right fit, an honest signal of what is.