Invoice Factoring Calculator

Calculate your advance amount, factoring fees, net proceeds, and effective APR for invoice/receivables financing across Africa.

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Invoice Factoring Calculator

Net Proceeds (Cash You Receive)
Advance Amount
Total Factoring Fee
Reserve (held back)
Reserve Released After
Cost as % of Invoice
Effective APR
Invoice factoring lets you convert outstanding invoices to immediate cash. The factor advances 70-90% upfront and releases the reserve (minus fees) when your customer pays. Non-recourse factoring protects you if the customer defaults but costs more.

Frequently Asked Questions

What is invoice factoring?
Invoice factoring is selling your accounts receivable (unpaid invoices) to a factoring company at a discount in exchange for immediate cash. The factor collects payment from your customer. Common in Nigeria, Kenya, South Africa, and Ghana for SMEs with long payment cycles from corporates or government.
Recourse vs non-recourse factoring?
With recourse factoring: if your customer doesn't pay, YOU must buy back the invoice or repay the advance. Non-recourse: the factor absorbs the credit risk if the customer defaults (genuine insolvency). Non-recourse typically costs 1-3% more but protects your cash flow from bad debts.
Who offers invoice factoring in Africa?
Major providers: Stanbic Bank (Pan-Africa), Standard Bank Invoice Factoring (SA), Nedbank (SA), ABSA (SA), First National Bank (SA/SADC). Fintechs: Pezesha (Kenya), Float (Ghana), Duplo (Nigeria), LiquidAfrica. Development banks: IFC-backed facilities through local partners. Invoice discounting (you keep collections) is also available.