A reverse factoring agreement is a financial strategy that can be used to improve the cash flow of a business. Put simply, it’s a contract between a business and its suppliers, where the supplier agrees to provide goods or services upfront while the business only repays at a later date. This allows businesses to take advantage of having improved cash flows as they will have more time to access funds, and suppliers will benefit from having more reliable payments for their goods or services. In addition, it also helps reduce invoicing costs, as suppliers can expect their invoices to be settled more quickly and efficiently. Overall, reverse factoring agreements are a great way to manage the finances of a business in the most efficient manner possible.