Luis M. Sosa May 9:

Well, if you're right, then it's reverse factoring. But then discounting is the right term, still.

philgoddard May 9:

Allegro, Luis Like I said, this has nothing to do with receivables. Your suppliers don't owe you anything, you owe them. This is reverse factoring.
http://www.unitedcapitalsource.com/blog/reverse-factoring/

Luis M. Sosa May 9:

Agree with Allegro. The source paragraph describes what factoring is. I copy what Investopedia says about factoring:


"A factor is an intermediary agent that provides cash or financing to companies by purchasing their accounts receivables. In short, a factor is a funding source; the factor agrees to pay the company the value of an invoice—less a discount for commission and fees.

Factoring can help companies improve their short-term cash needs by selling their receivables in return for an injection of cash from the factoring company. The practice is also known as factoring, factoring finance, and accounts receivable financing."

Source: https://www.investopedia.com/terms/f/factor.asp

AllegroTrans May 8:

What is receivables discounting? Receivables discounting is when you use your accounts receivable as collateral to borrow money. The loan amount usually ranges between 80% and 95% of the receivables value, which you will pay back with interest and fees to the lender upon maturity.

philgoddard May 8:

For
'a través del descuento de aquellas cuentas por cobrar de tus proveedores',
I suggest something like
'by taking advantage of your suppliers' discounts for prompt payment'.

philgoddard May 8:

Adrian has misunderstood the context. I must admit I did too at first, so I didn't explain my answer very well.

This is not receivables discounting, which is why it says 'sus proveedores'. It's the money you owe your suppliers.

This service is called reverse factoring, or supply-chain finance. The bank pays your suppliers' invoices for you as soon as you receive them, and receives a **discount** for early payment. You then pay the bank the full amount when the invoice is due, a month later or whatever, so the bank makes a profit.