How to Create a Term

Step 1 – Create the term

1. In the left-hand menu, click Terms, then Create Term in the top-right corner.
2. Enter the Term Name.
3. Complete Purchase Fees. All five are required – enter 0 for any that do not apply:
   • Escrow Reserve Rate
   • Fee Escrow Rate
   • Purchase Rate (the factoring fee)
   • Fee Per Invoice
   • Minimum Purchase Fee
4. Click Create. Collection fees are added afterwards, as the blade notes.

Step 2 – Finish the term

Open the new term from the Terms list. Review these two sections before you use it.

Escrow / Partial Payment

Controls what happens on a short payment.

• Base Collection Fees On – Invoice Balance, Invoice Amount or Advance Amount.
• Charge Collection Fees When – Partial Payment or Paid in Full.
• Escrow – released when partially paid, released when paid in full, or bypassed straight to cash reserves.

Collection Fees

Fees that accrue as an invoice ages, on top of the purchase rate. Build the lines by hand, or use Quick Generate to create them from a start day, duration, start rate and increment.

The fee charged is the single line matching the invoice's age, not the sum of the lines above it. If a term steps up to 1.25% at 45 days, an invoice paid on day 45 is charged 1.25% – not 2.25%.

Click Update to save each section.

Good to know

• Once a term has been used to purchase invoices it can no longer be edited. Check it carefully first.
• A term must exist before you can create a client.

Related articles

• How to Create a Client