Setting up Payer Limits and Pricing
- Filling in Payer Company Details
- Filling in Payer Business Profile
- Setting up Payer Limits and Pricing
- Creating Payer Trading Relationships
- Activating the Payer Account
Switching to the Limits and Pricing Tab
Open the Limits and Pricing tab once you successfully complete the business profile section.
Specifying Platform Limit and Pricing
Payer Limit / Exposure Limit (Platform Limit) - Maximum exposure the payer can have at any given time. This limit is automatically monitored by the system to ensure it is never exceeded.
Funder Margin - The return that the funder will earn from their investment expressed as an annual percentage. The Funder Margin value and the Floating Rate Value add up to the Funder Return (Annualised).
Floating Rate Index - In case you want the total funder return to be dynamic based on a floating rate value, use this dropdown to select the floating rate index. In order to add a new index to the system, please reach out to Finverity at support@finverity.com.
Floating Rate Value - When the Floating Rate Index is selected, the system takes the value of the selected index and adds it to the Funder Margin value to generate the Funder Return (Annualised) value. In order to edit the floating rate values, you need to set up SFTP integration with the platform.
Funder Return - The sum of the Funder Margin value and Floating Rate Value. It is the total return that the funder will earn from their investment expressed as an annual percentage.
Platform Fee - Your expected return on investment as the platform owner expressed as an annualised rate.
Total Fee - The sum of the Funder Return and Platform Fee. It is charged to either payer, seller or both depending on the ratio of the Fee paid by Seller/Fee paid by Payer configuration option. Seller pays their portion of the fee as a discount of their receivable (invoice) whilst the payer pays their portion of the fee as a margin on the invoice face value.
Configuring Additional Pricing
Fee Paid by Seller (%) - The percentage of the total fee paid by the seller as a discount.
Fee Paid by Payer (%) - The percentage of the total fee paid by the payer as a margin.
Advance % to Seller - Percentage of the invoice selling price advanced by the funder to the invoice seller. If less than 100% then the remaining balance of the invoice selling price will need to be paid to the seller on the repayment date of the invoice.
Late Fee (Daily %) - The daily fee (%) paid by the payer for late repayment of invoices. This fee is added to the repayment amount due from the payer. The late payment fee is calculated based on the investment i.e. (Late Payment Fee % * Days Overdue * Investment).
Earliest seller funding date - Earliest possible date an invoice can be purchased/funded.
Latest seller funding date - Last possible date an invoice can be purchased/funded.
Tenor - This is the max financing period of this facility. The system will apply this max financing period to the invoice purchase date to calculate the repayment date. However the repayment date will never exceed the max extension set here. If the max extension is set as 0 days, the repayment date will be the same as the original invoice maturity date.
Set Max Maturity Extension - Enable this setting if you want to extend the invoice maturity date for the payer, so they can pay you later.
Max Extension - If the maturity extension is enabled, specify the period of extension here.
Fixed Fee - This setting controls if payers need to pay fixed or dynamic fees if they pay for the invoice early. To learn more about early repayments, refer to the following article.
By disabling the Fixed Fee setting, you will allow payers to submit an early repayment, and they will have the option to select the invoice repayment date when generating a payment and the repayment amount will be calculated based on the selected date.Straight Discount - Enable to use the straight discounting model for calculating the interest. To learn more about straight discounting, refer to the following article.
We recommend that you set up a funding window of at least 7 days between the Earliest seller funding date and Latest seller funding date .
Specifying Additional Fees
Use this table to store facility arrangement fees that are charged to the client offline. The system only stores these fees and they do not affect any pricing.
Submitting Limits and Pricing
The Submit button will appear disabled if you have not completed all required fields. After successfully saving changes you can continue to the next part of the payer onboarding process - Creating Payer Trading Relationships .
Related Articles
Creating Payer Trading Relationships
As a platform admin, you use the Admin Portal to onboard and manage payers on the platform. The payer onboarding process is covered in a series of articles: Filling in Payer Company Details Filling in Payer Business Profile Setting up Payer Limits ...Activating the Payer Account
As a platform admin, you use the Admin Portal to onboard and manage payers on the platform. The payer onboarding process is covered in a series of articles: Filling in Payer Company Details Filling in Payer Business Profile Setting up Payer Limits ...Filling in Payer Business Profile
As a platform admin, you use the Admin Portal to onboard and manage payers on the platform. The payer onboarding process is covered in a series of articles: Filling in Payer Company Details Filling in Payer Business Profile Setting up Payer Limits ...Filling in Payer Company Details
As a platform admin, you use the Admin Portal to onboard and manage payers on the platform. The payer onboarding process is covered in a series of articles: Filling in Payer Company Details Filling in Payer Business Profile Setting up Payer Limits ...Setting up a Funding Relationship
You need to onboard at least one Payer before following this guide. What is a funding relationship? Funding relationships allow you (as the platform admin) to control which fund managers can invest into which payers (obligors). A fund manager will ...