Yellow Factoring, a Cameroon-based company specializing in invoice financing, says it has mobilized more than CFA6 billion for local businesses between 2021 and 2026. The figure reflects receivables sold by its clients to secure early cash before their invoices come due.
The data was shared in Douala during a conference focused on SME financing tools. According to Chief Executive Officer Angela Ngo Ndouga, more than 100 companies across multiple sectors have used the service.
Factoring allows a business to sell its receivables to a specialized firm, which advances part of the invoice value upfront and later collects payment from the end customer. Ngo Ndouga said Yellow Factoring relies on financial partners—including foreign investment funds and local banks—to fund these advances.
The company says it can disburse up to 80% of an invoice’s value within three days, once checks are completed. In return, it charges a 2% fee on the invoice amount. That fee covers both early access to cash and the risk tied to the transaction, according to the company.
Yellow Factoring now reports a client base of more than 100 companies and says it operates with capital of CFA300 million. Its services are aimed primarily at businesses dealing with long payment cycles and looking to finance operations without taking on traditional bank loans.
Beyond Yellow Factoring, Cameroon’s factoring market remains limited. Industry estimates suggest it is largely dominated by two commercial banks—Bicec and Société Générale—with a combined annual volume of around CFA30 billion. By contrast, short-term financing needs for SMEs are estimated at about CFA800 billion.
That gap highlights how underused factoring remains, even as small and mid-sized businesses—central to Cameroon’s economy—continue to face long payment delays. In this context, factoring offers a way to stabilize cash flow, support operations, and potentially drive growth.
Cameroon introduced a legal framework for factoring in March 2014. But industry players say scaling the sector will require more funding, particularly through stronger involvement from banks and investors.
Frédéric Nonos
