Fundamentals
How invoice finance works: from receivable to settlement
From approved receivable and invoice review to settlement, fees, and repayment at maturity.
What invoice finance is
Invoice finance converts an eligible unpaid receivable into earlier working capital. A business presents an invoice for review, investors provide funding at an agreed price, and the receivable remains subject to the debtor paying at maturity.
Who is involved
The issuer supplied the goods or services, the debtor owes the invoice, and the investor funds the discounted receivable. AfriRuil provides the controlled verification, auction and settlement workflow.
How invoice value and settlement differ
Face value is the amount due from the debtor. The settlement amount is lower because it reflects the winning annualised yield and remaining days to maturity. Platform fees are disclosed separately before payout.
What happens at maturity
When the debtor pays, the payment must be identified and reconciled before allocation to the position. Late payment or non-payment can delay or reduce the investor outcome.
Key risks and documents
Review depends on reliable invoice, purchase-order, delivery and debtor information. Verification improves the evidence available for a decision but does not guarantee payment or eliminate loss.