This guide will explain the Early Payment options available in SmartPay
What is Early Payment in SmartPay?
We offer early payment options for you invoices via Invoice Factoring.
Invoice factoring is sometimes known as ‘invoice financing’, is the process of selling outstanding invoices to a third party to improve the cash flow of your business and maintain financial stability.
Why factor invoices?
There comes a time for most businesses, especially smaller or newer business where cash flows get tight.
When margins are slim, delayed payments can seriously hamper cash flow and a businesses ability to operate.
The option for invoice factoring allows businesses to avoid short term cash flow problems, and get paid early for their work.
Factoring is also non-recourse. This means that, if a customer refuses or can’t pay, you’re not obliged to repay the money once a factoring agreement is in place.
Fast and risk free finances, no contract involved, can do all this without leaving the CX platform.
Which Factoring option is right for my business?
Factoring Invoices is optional, and each option can be beneficial in different circumstances.
Factoring is often used by businesses who want certainty over their income, as they can guarantee payment.
Factoring also improves cash flow by ensuring businesses do not need to wait the full payment terms in order to be paid for their work.
The scenarios below will help explain which SmartPay Invoice Factoring option is best and in what circumstances.
Spot
The Spot option allows you to factor an invoice at the point of invoice creation.
To use Spot, simply select the Early Payment option when creating an invoice from your SmartPay dashboard.
This image shows the Spot Early Payment option that shows while you create an invoice.
PayMeNow
PayMeNow unlocks an option to factor invoices en masse. This means you can get paid on all eligible invoices in a single press.
From your SmartPay Accounts Receivable Dashboard you will see the PayMeNow option. (This only shows when you have eligible invoices to be paid, more information on eligibility later in this guide.
This image shows the PayMeNow option as shown on the Accounts Receivable dashboard.
When you click into the PayMeNow option you will see more information and a breakdown of fees.
This image shows more detail on the PayMeNow option, including charges.
SmartBook
The SmartBook option allows you to set up a long term agreement with TEG where we will factor all your eligible invoices on your behalf.
If you are interested in SmartBook please inform our Support team via a support request and we will arrange for a member of the invoice factoring team to contact you.
Factoring eligibility
Any SmartPay seller who does not use external factoring is automatically eligible to use Pay Me Now.
Other early payment options are enabled after a period of time on the platform:
- 60 Minute Payments — Enabled after 3 months of seller activity
- SmartBook — Enabled after contract agreement
- Payment Guarantee — Enabled after contract agreement
Please be advised that factoring is offered on a case by case basis and not all invoices can be factored.