Approving invoices for funding is the step between a client sending you an invoice and money leaving your account. This is where credit limits are checked, reserves and fees are calculated, and the invoice is committed to a funding batch.
Step 1 – Select the invoices
- In the left-hand menu, click Invoices. New invoices sit on the Pending tab.
- Use the client list on the left, or Search and Filter, to narrow to what you are working on.
- Tick the invoices you want to fund. Tick the header checkbox to select the whole page.
- To check an invoice's paperwork without leaving the list, click its preview icon. The viewer scrolls through all the invoice's documents, with zoom controls. If you don't see the icon, add the preview column from the column picker. Batches on the Funding screen have the same preview.
As soon as anything is selected, an action bar appears: Delete Invoice, Move to Rejected, Verify and Approve for Funding.
1 Pending tab · 2 Filter by client · 3 Tick the invoices to fund · 4 Delete Invoice, Move to Rejected, Verify · 5 Approve for Funding
All selected invoices must belong to the same client. Mixing clients in one approval is rejected.
Step 2 – Read the warnings before anything else
Click Approve for Funding. The left side of the screen shows warnings and client context; the right side shows what will actually be funded.
1 Warnings · 2 Credit warning and Request Credit Increase · 3 Client details and summary · 4 Account (funding method) · 5 What will be funded · 6 Additional cash reserve and fees
Credit warnings
If the purchase would push a debtor past its credit limit, you get a Credit Warning naming the debtor and showing the arithmetic – current open AR, the batch amount, and the new approved total. Use Request Credit Increase to raise it for review rather than approving over the limit.
If the client's or a debtor's credit limit has expired, the warnings say so, for example "Credit limit expired on 12/25/2026". Every expired limit for this funding is listed together, so you can renew them first or knowingly go ahead.
"The client has no payment options, the invoice cannot be purchased"
This one blocks approval outright. It means the client has no funding instructions set up, so there is nowhere to send the money.
Fix it on the client: Companies › [client] › Funding Instructions › New Funding Instruction. Add at least one method (ACH, Wire, Check and so on), then come back and approve.
Step 3 – Check the numbers
The Invoices panel shows what the term produced for this batch:
- Invoice Amount – the face value.
- Cash Reserve – any amount going to the client's cash reserve.
- Escrow Reserve – held back per the term's escrow reserve rate.
- Fees and Fee Escrow – the purchase fee and any fee held in escrow.
These come from the client's term. If they look wrong, the term is the place to check, not this screen.
Your levers
- Zero Out Payment Fee – waives the payment fee for this funding only.
- Additional Cash Reserve – Hold keeps an extra amount back from the advance; Release pays an extra amount out. Use this for one-off adjustments instead of editing the term.
- Additional Fee – Charge adds a one-off fee to this funding and Credit gives one back. Choose the GL code it posts to.
Add a note explaining anything unusual. Your future self reconciling the month will thank you.
Step 4 – Approve
Click Approve for Funding. The invoice moves to the Approved tab and appears on the Funding screen, waiting to be released.
1 Funding · 2 Fund tab · 3 Payment method · 4 The approved batch, ticked · 5 Selected Amount · 6 Fund Selected (final, cannot be undone)
Approving does not move money. Nothing leaves your account until the batch is funded on the Funding screen. If your environment uses Automated Funding by Payment Type, batches with one of the chosen payment methods are funded automatically straight after approval, so enter any deductions before you approve.
Related articles
- Funding and Payment Batches
- How to Create a Term
- How to Manually Create Invoices