Calculator
Factoring, ABL or receivables securitisation
The calculator compares three ways of financing trade receivables for the same need. It gives the financeable amount of each solution, its annual cost and its balance sheet effect.
Securitisation
€1.64m
lowest annual cost among the solutions that cover the need, equal to 4.68% of the amount used
| Item | Factoring | ABL facility | Securitisation |
|---|---|---|---|
| Financeable amount | €42.50m | €57.50m | €40.00m |
| Amount used | €35.00m | €35.00m | €35.00m |
| Uncovered need | €0.00m | €0.00m | €0.00m |
| Annual cost | €1.82m | €1.65m | €1.64m |
| Cost as % of the amount used | 5.19% | 4.71% | 4.68% |
Balance sheet effect
Factoring
The company sells €41.18m of receivables. If the sale is derecognised, financial debt is unchanged and receivables fall by €41.18m. If the sale stays on the balance sheet, financial debt increases by €35.00m.
ABL facility
Financial debt increases by €35.00m. Receivables and inventory stay on the balance sheet.
Securitisation
The company sells €43.75m of receivables. If the sale is derecognised, financial debt is unchanged and receivables fall by €43.75m. If the sale stays on the balance sheet, financial debt increases by €35.00m.
The initial values are a sample input to replace with the offers received. This calculation gives an order of magnitude and does not bind any lender.
Method
The comparison formulas
The amount used is the lower of the need and the financeable amount. The factoring fee applies to the share of revenue assigned. ABL is a loan secured on receivables and inventory: its drawing adds to financial debt. For factoring and securitisation, the calculation gives the sale derecognised from the balance sheet and the sale kept on the balance sheet.
Financeable amount
Financeable amount = receivables × advance rate (+ inventory × advance rate on inventory for ABL)
Cost of factoring
Annual cost = amount used × financing rate + revenue assigned × fee
Cost of ABL and securitisation
Annual cost = amount used × financing rate + annual fixed fees
Example
Worked example
A company generates €240.00m of revenue. It carries €50.00m of trade receivables and €30.00m of inventory for a need of €35.00m. Factoring finances up to €42.50m and costs €1.82m a year. The ABL facility, which takes inventory into account, finances up to €57.50m for €1.65m a year. Securitisation finances up to €40.00m for €1.64m a year, or 4.68% of the amount used. The rates in this example are sample inputs.
Benchmarks
Factoring in France in 2025
| Activity | Receivables purchased | Annual change |
|---|---|---|
| Domestic factoring | €270,285m | 0.0% |
| International factoring | €169,145m | +5.0% |
| Total | €439,430m | +1.9% |
Outstanding receivables to be collected at 31 December 2025: €66,070m.
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