BizInfo Africa Tools
The Cost of Waiting
Payment terms, priced honestly · Updated July 2026 · Nairobi
What do payment terms actually cost? At a 16 percent cost of money, 90-day terms cost a Kenyan SME about 3.9 percent of the invoice value in financing terms, roughly KES 39,000 on every million shillings, before any late payment. This calculator prices your own invoice, your terms, and your three ways out: an early payment discount, financing, or insurance.
BizInfo Africa Tools
What Do Those Payment Terms Actually Cost You?
Every day between delivery and payment, your money is working for your buyer instead of you. Enter your invoice and terms. See the real number.
The invoice value you are waiting on.
CBK average lending rate was 14.7% in March 2026; SMEs commonly borrow at 15% to 18%. Use your actual facility rate if you know it.
Typical Kenyan market practice: SME to SME around 30 days, large corporates 60 to 90 days, import transactions up to 120 days.
What if they pay late? The reality check
In Kenya, late payment is the norm, not the exception. Drag to see what a delay does to the number above.
Storage, penalties, idle staff, or whatever a stalled shilling costs you operationally.
Scenarios
Invoice finance in Kenya typically prices above bank term loans.
Cost of waiting
KES 0
How this is calculated: cost of waiting = invoice amount × your annual cost of money × days ÷ 365. It is the financing value of the cash you are owed, whether you borrow to cover the gap or forgo the return that cash would earn in your business. This tool runs entirely in your browser; nothing you enter is stored or transmitted. Rates referenced: CBK weighted average lending data, 2026. It is an illustration, not financial advice; your facility terms govern.
Where do the numbers come from?
The formula in one line, the CBK March 2026 reference, and that market terms context (SME-to-SME ~30 days, corporates 60–90, imports to 120) reflects ASAP screening practice.
What should I do with the result?
Price waiting into quotations, use the break-even discount in negotiations, and when a buyer relationship depends on knowing who you’re really dealing with, that’s a Business Information Report conversation.
Now see how counterparties read the rest of your business.
The BCI shows you what counterparties will see. When you need it verified, that’s the Enhanced Business Evaluation.
