Invoice Financing in Kenya: How Suppliers Can Finance Unpaid Invoices

Selling on 30-, 60-, or 90-day payment terms is standard practice across Kenya’s agricultural supply chain. However, waiting months for offtakers to clear their bills ties up critical working capital. This delay can make it harder for food processors, distributors, aggregators and other established agri-food suppliers to source inputs, maintain production, restock inventory or fulfill new orders. 

To solve this cash flow bottleneck, growing agribusinesses use invoice financing to finance unpaid agriculture invoices directly. This facility allows Agri-SMBs to access immediate liquidity tied to their verified sales without taking on traditional long-term debt.

What is Agri Supplier Financing ((Invoice Financing)?

Agri Supplier Financing (Invoice Financing) is a transaction-linked facility built specifically for agricultural producers and processors, distributors, aggregators, packhouses and other agri-food suppliers operating in Kenya. It is designed for commercial business operations generating a consistent monthly turnover, not for individual smallholder farmers.

Instead of waiting for credit terms to expire, an eligible agribusiness uploads an approved buyer invoice and delivery note to unlock up to 85% of the invoice value immediately. This capital supplements existing cash flow, ensuring business operations continue without interruption.

How Repayment Works: ASF vs. ASF Express

Avenews offers two supplier financing structures. The key operational difference between them comes down to who settles the financing at the end of the term:

• Agri Supplier Financing (Invoice Financing) - Repaid by Your Buyer:

  • Advance: You receive up to 85% of your approved invoice value up front.

  • Repayment: On the invoice due date, your customer (the buyer) repays Avenews directly into a dedicated account.

  • Settlement: Avenews retains the advance plus markup and remits the remaining balance to your business.

• Agri Supplier Financing Express (Invoice Financing Express) - Repaid by Your Business:

• Advance: You receive up to 85% of your approved invoice value up front.

• Repayment: Your buyer pays your business directly through your standard payment channels.

• Settlement: Your business (the supplier) manually repays Avenews the advance plus markup at the end of the agreed term.

Frequently Asked Questions

Q: Who qualifies for invoice financing in Kenya? A: Commercial B2B Agri-SMBs-including producers and processors, distributors, aggregators, packhouses and other agri-food suppliers-operating in Kenya that sell to verified offtaker. Applicants must meet minimum monthly turnover criteria to qualify.

Q: Is this facility suitable as invoice financing for dairies? A: Yes. Dairy aggregators and processors frequently utilize invoice financing for dairies to bridge the payment gap between large retail buyers and daily milk supplier payouts.

Q: What documentation is required to fund an unpaid agriculture invoice? A: You need a valid commercial invoice along with a corresponding signed delivery note or proof of delivery.

To evaluate how your business can unlock working capital and fund unpaid agriculture invoices, visit the Avenews Supplier Financing to review eligibility or speak directly with an agricultural finance specialist.