Invoice Factoring & Supply Chain Finance: Advance Rates, Fees & Effective Cost
Invoice ageing and eligible receivables, concentration limits, advance and reserve, discount fees per 30 days and service fees, the effective annual cost with a chart, recourse vs non-recourse expected loss, reverse factoring at the buyer’s credit rate, dynamic discounting returns and an all-in comparison of overdraft, factoring and SCF: 8 graded labs on one fictional packaging SME.
The first lesson is free — no account needed.
About this course
An invoice factoring and supply chain finance course that funds the receivables of one fictional packaging company, Quillmont Packaging, in a spreadsheet, for finance managers, treasurers, small business owners, credit analysts and finance students. You age open invoices and apply a factor's eligibility rules, cap the largest customer with a concentration limit, apply an 85% advance rate and find the cash available to draw, price a batch of invoices with a discount fee per 30 days, a service fee and the rebate at collection, turn the fee quote into an effective annual cost, compare recourse and non-recourse factoring on expected bad-debt loss, price reverse factoring at the buyer's credit rate, switch sides to annualise dynamic discounting returns, and compare overdraft, factoring and SCF on one all-in rate. Illustrative fees and rates, with no affiliation with any factor, bank or platform. Not financial advice. The first lab is free.
Lessons
- Invoice Ageing & Eligible Receivables: What the Factor Will FundFree
- Advance Rate, Concentration Limits & the Reserve Pro
- Factoring Fees: Discount Fee per 30 Days, Service Fee & Net Proceeds Pro
- The Effective Annual Cost of Factoring (APR Equivalent, Chart) Pro
- Recourse vs Non-Recourse Factoring: Who Carries the Bad Debt? Pro
- Reverse Factoring: Early Payment at the Buyer’s Credit Rate Pro
- Dynamic Discounting vs SCF: the Buyer’s Return on Early Payment Pro
- Overdraft, Factoring or SCF? Comparing All-in Costs (Chart) Pro