Question 1

What is reverse factoring?

Accepted Answer

Reverse factoring (also called supplier finance or approved payables finance) is a buyer-led financing arrangement where a bank pays a supplier early based on the buyer's credit rating. The buyer repays the bank on the original due date.

Question 2

How is reverse factoring different from invoice factoring?

Accepted Answer

In reverse factoring, the buyer initiates the program and the bank's credit decision is based on the buyer. In invoice factoring, the supplier initiates and the bank assesses the supplier's creditworthiness.

Question 3

Does reverse factoring affect the buyer's balance sheet?

Accepted Answer

When structured correctly as off-balance-sheet approved payables finance, reverse factoring does not increase the buyer's reported debt. Strike SCF programs are structured to meet standard off-balance-sheet treatment.

Question 4

How quickly can suppliers receive early payment on Strike SCF?

Accepted Answer

Once an invoice is approved by the anchor buyer on Strike SCF, suppliers can request early payment and receive funds within hours of bank approval.

Question 5

What is invoice factoring?

Accepted Answer

Invoice factoring is when a supplier sells its approved receivables to a bank or financier at a small discount in exchange for immediate cash. The bank then collects the full invoice amount from the buyer on the due date.

Question 6

Do suppliers need a separate credit application to use Strike SCF invoice factoring?

Accepted Answer

No. On Strike SCF, suppliers access invoice factoring through their anchor buyer's program. The credit decision is anchored to the buyer, so no separate supplier credit application is required.

Question 7

What is the difference between invoice factoring and reverse factoring?

Accepted Answer

Invoice factoring is supplier-initiated — the supplier sells its receivables. Reverse factoring is buyer-initiated — the buyer sets up the program and suppliers opt in. Strike SCF supports both structures on one platform.

Question 8

How fast is the funding on invoice factoring through Strike SCF?

Accepted Answer

Suppliers receive funds within hours of bank approval on Strike SCF. The AI co-pilot pre-screens invoices before submission, reducing back-and-forth and accelerating approval.

Question 9

What is purchase order financing?

Accepted Answer

Purchase order financing (PO financing) lets suppliers access working capital against a confirmed purchase order before goods are produced or shipped. The bank funds the production costs, and repayment happens when the buyer pays the invoice.

Question 10

Who is purchase order financing for?

Accepted Answer

PO financing is designed for suppliers who need cash to fulfill a large order but don't yet have an invoice to factor. It bridges the gap between order confirmation and delivery.

Question 11

How does Strike SCF's PO financing differ from traditional PO finance?

Accepted Answer

Strike SCF connects the PO financing decision to live counterparty data — delivery records, payment history, and AI-assessed risk — so banks can make faster, more confident funding decisions without manual document assembly.

Question 12

Is PO financing available without a pre-existing bank relationship on Strike SCF?

Accepted Answer

Yes. Strike SCF is an open marketplace. Suppliers can access PO financing from banks they have never worked with before, based on their PassportScore and verified trade data.

Question 13

What is dynamic discounting?

Accepted Answer

Dynamic discounting is when a buyer uses its own cash to pay suppliers early in exchange for a discount on the invoice. The earlier the payment, the larger the discount. It generates a return on the buyer's excess liquidity.

Question 14

How is dynamic discounting different from reverse factoring?

Accepted Answer

Dynamic discounting uses the buyer's own cash — no bank is involved. Reverse factoring uses a bank's capital. Dynamic discounting is ideal when the buyer has excess liquidity and wants to earn a return; reverse factoring is better when bank funding is preferred.

Question 15

What return can a buyer expect from dynamic discounting?

Accepted Answer

Returns vary by invoice size and payment timing, but dynamic discounting typically generates annualised returns well above money market rates. Strike SCF shows the projected return before the buyer approves each early payment.

Question 16

Does the supplier have to participate in dynamic discounting?

Accepted Answer

Supplier participation is optional. On Strike SCF, suppliers see early payment offers and choose whether to accept. They are never obligated to take early payment.

Turn the match into working capital