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Buyer-Led · Supplier Discount · Reverse Factoring

Supply Chain Finance
Australia - early-settle suppliers

Name: Mortgagefy
Address: Sydney, NSW, AU
Telephone: +61432634648
Price range: Free

By the Mortgagefy Team · Credit Rep 532656 of ACL 348324 · Published 2026-10-15 · Last reviewed 2026-10-15

Pay suppliers early at a discount; the bank funds the gap and you repay on your normal payment terms. Suppliers love it, you keep cash longer, bank earns the spread.

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Takes under 3 minutes. We'll match you with the right lender for your situation.

Who this is for

Mid-market buyers with strong credit profiles and 20+ regular suppliers who would benefit from faster payment.

Buyer with annual purchases above $5m across multiple suppliers
Strong credit profile (lender underwrites you, not your suppliers)
Current supplier payment terms 30-60 days
Suppliers would value early payment at a discount
Want to strengthen supplier relationships without ceding margin
Mid-market or larger, not a small single-site business

The real challenge

Standard buyer-supplier dynamics are adversarial: you want to pay later, suppliers want to be paid sooner. Supply chain finance (also called reverse factoring) resolves it: the bank pays your suppliers immediately at a small discount, you repay the bank on your normal terms.

Benefits: suppliers accept the discount gladly (early cash), you keep working capital longer, your supplier relationships strengthen, and the facility sits off-balance-sheet in many cases (depending on accounting treatment).

How Mortgagefy helps

Specialist SCF providers. We know the Australian supply chain finance panel (banks and non-banks) and their minimum programme size.
Supplier onboarding support. Programme success depends on supplier adoption - we help with the pitch and the operational rollout.
Off-balance-sheet positioning where accounting treatment allows (talk to your auditor; this isn't guaranteed).
Honest size thresholds. SCF makes sense from about $10m-$20m of annual supplier spend. Smaller programs rarely justify the setup effort.

Need to model repayments first? Try our Sydney home-loan calculators for an indicative figure.

How it works

Scoping call

Review spend size, supplier count, current terms, your credit profile.

Programme design

Choose which supplier tier is included, early-pay discount rate, operational workflow.

Lender selection

Shortlist specialist SCF providers whose minimum programme size matches yours.

Rollout

Supplier onboarding, platform integration, live programme typically 6-12 weeks from start.

Get a personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Frequently asked questions

What's reverse factoring?

Same thing as supply chain finance (SCF). Called 'reverse' because unlike traditional factoring (where supplier initiates), reverse factoring is buyer-led - the buyer sets up the programme and invites suppliers in.

What's the typical early-pay discount?

Depends on days early vs invoice value - typically 0.5-1.5% for 30 days early. Suppliers decide invoice-by-invoice whether to accept the early-pay or wait for normal terms.

Is SCF off-balance-sheet?

Depends on accounting treatment under IFRS 15/16 and local standards. If structured carefully, SCF liabilities can be classified as trade payables (not debt). Talk to your auditor before you commit to a programme.

What's the minimum programme size?

Most SCF providers require $10m-$20m of annual supplier spend to make the setup effort worthwhile. Programmes under that are hard to make economic.

How does the lender decide which suppliers are eligible?

Usually all of your suppliers can opt in. The lender's credit decision is on you (the buyer), not your suppliers. Suppliers choose on each invoice whether to take the early-pay discount.

Can my suppliers refuse to participate?

Yes - participation is voluntary for each supplier. Most who understand it opt in because the discount cost is less than their own cost of capital.

Get your free supply chain finance assessment

Pay suppliers early at a discount; bank funds the gap. For mid-market buyers with $10m+ supplier spend.

Start Your Free Assessment Call 0432 634 648

Related guides

Invoice Finance Australia

Supplier-led alternative where the supplier initiates.

Working Capital Loan

Direct working capital alternative.

Import / Export Business Loan

Trade finance for cross-border supply chains.

Business Loans Sydney

Term loans alongside SCF.

Manufacturer Business Loan

Common manufacturer use case for SCF.

Business Expansion Loan Sydney

Expansion capital alongside SCF.

Information checked October 2026. This information is general in nature and does not take account of your personal objectives, financial situation or needs. Business, commercial and development finance eligibility, pricing and documentation varies by lender and changes frequently. Confirm current requirements with your chosen lender and seek professional advice before applying. Mortgagefy — Credit Representative 532656 of ACL 348324.

Supply Chain FinanceAustralia - early-settle suppliers