Since the 2008 global financial crisis, interest in supply chain finance has grown as firms increasingly seek alternative sources of working capital. In this context, reverse factoring (RF) has emerged as a prominent short-term financing instrument, particularly for micro, small, and medium-sized enterprises (MSMEs). Under RF arrangements, suppliers sell accounts receivable to financial intermediaries in exchange for immediate liquidity, benefiting from the lower financing cost of large, creditworthy buyers that guarantee payment through invoice confirmation. Using firm-level data on MSMEs in Mexico, this paper provides evidence on the effects of RF adoption. We document three main findings. First, access to RF is associated with a statistically significant increase in firm sales. Second, these gains are primarily driven by expansion along the extensive margin, as firms increase the number of active clients following adoption. Third, the magnitude and persistence of the effect depend on usage frequency: occasional use yields no measurable gains, whereas sustained use generates persistent improvements over time. In addition, descriptive evidence suggests that while RF reduces financing costs, it does not lead to systematic changes in payment terms.