SCF Financing

Supply Chain Finance

"Reverse Factoring" allows a company to manage all of its payments to suppliers by sending its approved invoice payment orders to BBVA, which in turn offers these suppliers to discount them in order to advance their collection.

BBVA leads more than 3,400 Reverse Factoring programs in more than 20 currencies, mainly in Europe and Latin America.

To do this, BBVA offers purchasers 3 different electronic channels for sending payment files: BBVA net cash, Host-to-Host and SWIFT. In addition, the bank is able to accept any type of file format sent by the buyer. 

Benefits for suppliers

  • It optimizes their working capital by reducing collection times, improving cash and debt positions in the short term
  • For SMEs, they have access to cheaper financing, since the discount is based on the buyer's rating
  • It eliminates collection risk and FX risk (covered by the bank), since it is a discount without recourse
  • It does not consume clean credit facilities with banks
  • Simplicity: Easy subscription (online), without having to open a bank account in BBVA or sign other contracts
  • Deposit flexibility for all, some or none of the invoices
By offering its suppliers an SCF program that allows them to anticipate receipts in progress, the buyer also enjoys certain benefits:
  • Negotiating longer payment terms, increasing their average payment period and improving their working capital and liquidity*
  • Strengthening their relationship with suppliers, which will be more solvent through the program
  • Improving cash management through a streamlined process
  • Reducing administrative costs

    (*) Subject to the relevant legal requirements.