A volume rebate gives a client back part of the purchase fees they paid in a month, based on how much they factored that month. You set the tiers once on the client. FactorCloud works out each month's rebate for you, and nothing is posted until you approve it.
Set up tiers for a client
- Open the client from Companies. On the Details tab, go to Volume Rebate and click Edit.
- Turn on Enable Volume Rebate.
- Click Add Tier for each tier, up to ten. For each one enter:
- the starting invoice amount – the month's purchase volume at which this tier begins, and
- the Fee Rebate percentage for that tier.
- Click Update.
Both the amounts and the percentages must go up from one tier to the next. Volume below the first tier earns no rebate. For brokers, the same section is on the broker's profile.
1 Enable Volume Rebate · 2 Add Tier (or Clear All) · 3 Starting invoice amount for each tier · 4 Fee Rebate % · 5 Update
Turning the rebate off later keeps the tiers, so you can turn it back on without re-entering them.
How the rebate is worked out
On the first day of each month, FactorCloud looks at the month before:
- Purchase volume – the face amount of the client's invoices funded that month, less any chargebacks and write-offs applied that month. Fuel advances and over advances don't count.
- Tier – the highest tier that volume reaches.
- Rebate – the tier's percentage of the purchase fees charged on that month's invoices. It is a share of the fees, not of the volume.
Example: tiers of $50,000 at 5% and $100,000 at 10%. In October the client's purchase volume is $120,000 and its purchase fees are $3,000. The volume reaches the second tier, so the rebate is 10% of $3,000 = $300.
If the client doesn't reach the first tier, no rebate request is created for that month. A month is only ever calculated once.
Review and approve rebates
Go to Settings › Volume Rebates. New requests wait on the Pending tab. Use Period to pick the month and the search box to find a client.
1 Volume Rebates tab · 2 Pending, Approved, Denied, All · 3 Period · 4 Purchase volume, chargebacks, tier, purchase fees and calculated rebate · 5 Adjusted rebate and disputed amount · 6 Actions
For each request you can:
- Adjust the amount, if you've agreed something different with the client,
- Approve it, one at a time or several at once with Approve Selected, or
- Deny it.
Approving posts the rebate to the client's Cash Reserve and reduces fee income by the same amount (GL 1023), dated the day you approve. An approval can't be undone, and a denial is final, so check the amount first.
The Disputed column shows disputed receivables for information only. They aren't taken off the volume.