Reverse factoring
Reverse factoring is a special type of traditional factoring, agreed upon between the factor and the debtor from a contract for the sale of goods or provision of services, both domestically and internationally. Under this arrangement, the factor assumes the debtor's payment obligation toward the creditors and has the right to collect payment from the debtor within the period defined by the sales or service contract. Unlike traditional factoring, in this transaction, the debtor is required to obtain the creditor's consent.