Reverse factoring, also known as supply chain financing, is a type of financing that allows businesses to borrow money against their unpaid invoices to their suppliers. In this type of financing, the lender pays the supplier directly, and the business repays the loan when the invoice is paid. Reverse factoring can be a great way for businesses to improve their cash flow and maintain good relationships with their suppliers, but it can also be expensive, with fees and interest rates that can add up quickly.