Step 1. Using the menu bar on the left, click on Terms and then click Create Term in the top right corner.
Step 2. A window will open from the right side of the screen to begin entering the term information. Enter the desired name for the term, escrow reserve rate, purchase rate (factoring fee), fee per invoice, and minimum purchase fee. These are all required fields, if one or more do not apply to the term you're creating, please enter 0.
Step 3. Once you have all required fields entered, click Create at the bottom. Now that you've created the term, you'll need to customize the term further by clicking into the term from the active term list. Using the search bar, enter the term name and click enter, then click on the term. This will bring you into the term profile.
Step 4. Once you're in the term profile, you can begin customizing the term further. Specifically, the Escrow/Partial Payment and Collection Fees sections will need reviewed. Please confirm these two sections are set correctly for your new term before saving. If you need to edit the previously entered data, which is now located in Term Details and Purchase Fees, you can click edit by those sections to make any adjustments. *Please note - once a term has been used to purchase invoices, it can no longer be edited.
Step 5. Escrow/Partial Payment - This section dictates when collection fees and escrow reserves are released if there is a partial/short payment - if applicable.
-Base Collection Fees On - choose which amount you'd like the collection fees to be based on
- Invoice Balance
- Invoice Amount
- Advance Amount
-Charge Collection Fees When - When you'd like the collection fees to be charged and applied to the client's cash reserves if ever a partial/short payment.
- Partial Payment
- Paid In Full
-Escrow - When you want escrow released and moved to Cash Reserves
- Released When Partially Paid
- Released When Paid in Full
- Bypass To Cash Reserves
Step 6. Collection Fees - Here you can build additional fees that will accrue over the life of the invoice. This will be in addition to the purchase rate if there is one. These fees will be calculated based on the age of the invoices.
By creating lines, you're telling the system how much and when to accrue fees based on the age of invoices. Once an invoice is paid the accrued fees will be applied/charged to the client using their cash reserves.
Manually
You are creating each line manually.
Keep adding lines manually until you've reached the desired amount of accrued fees. Be sure each line is increased by the correct amount. When an invoice is paid, the amount charged is determined by the line matching the age of that invoice. In the example below, if an invoice is paid at 45 days, it will be charged an additional 1.25% NOT 2.25%.
Don't forget to save any changes by clicking update at the bottom.
Quick Generate
Fill in the required information and the system will automatically create each line for you. Please double check each line has been created as desired.
Example below- An additional 1% to begin accruing on day 30 and increases by 0.25% every 10 days until day 80.
Once you click yes, the system will auto generate the lines for you, as shown below. Do not forget to click update to save these changes.
Please note - When an invoice is paid, the amount charged is determined by the line matching the age of that invoice. In the example above, if an invoice is paid on day 65, it will be charged an additional 1.75% NOT 4.5%.