1) Discount Rate – starting at 1.2% per month. Minimum duration is 30 days.
2) Fee – computed as follows: Invoice Amount * (Discount Rate/30) * Number of Days.
3) Advance Rate – this is the percentage of the invoice amount that we will advance. Starting at 80%.
Our goal is to understand your business, your customers, and your cash flow needs. Payplant evaluates the creditworthiness of your customer, whereas banks will focus on only your company financials and cash flow. Since our team has deep roots in working with small businesses, we understand the importance of a fair and flexible funding partner. For this reason, we have no long-term lockups or monthly minimums that you may see from other factors. See detailed comparison to other forms of funding.
Yes. Many banks will subordinate their lien to Payplant because receivables financing is good for your cash flow and business. If subordination is not an option, we may ask for a Personal Guaranty. Payplant evaluates this on a case by case basis.
Yes, as long as the invoices are not past due, are verifiable and are from an approved customer.
Ideal customers are publicly traded companies, government entities and large private companies. Evaluating the creditworthiness of these entities is more transparent, permitting a lower rate to our clients. If your customers are small private companies or start-ups, rates will be higher.
We can fund your first invoices in 1-2 business days if the information we request is readily available and invoice verification is prompt.
Start by completing our online application. If your company meets basic qualifications, we will ask you to submit the following:
1) Financials – Balance Sheet, Income Statement & Cash Flow Statements for current year to-date and previous year
2) AR (Accounts Receivable) Aging report
3) AP (Accounts Payable) Aging report
4) Incorporation documents – e.g. Articles of Incorporation or Doing Business As Filings
5) Customer Contracts associated with the invoices you wish to finance
6) Bank Statements for last 3 months
7) Customer Payment history
No. There are two categories of customers when dealing with Payplant:
1) Approved Customers – these are customers whose invoices you wish finance through us. You don’t need to finance all invoices to these customers but all payments from these customers will need to come through Payplant. We will pass through any that we did not finance.
2) Other Customers – these invoices don’t come through us.
We have multiple options and will accommodate your preference.
1) Supplier Portal – if your customer has a supplier portal, we can verify invoices electronically.
2) Email – we can email the verification request to your customer’s accounts paybale contact or you can email and copy us.
3) Phone – we can call your customer’s accounts payable contact.