Volume based factoring pricingReward the clients who grow with you, without a spreadsheet.
Volume pricing is how a factor keeps its best clients selling it more paper. Run by hand, it is a spreadsheet at month end, a rate someone looks up in the agreement, and a check nobody can trace back.
FactorFox has always priced by volume, and FactorFox AI takes it further. Fox reads the tiers from the client’s own agreement. The month prices itself from the book on the 1st. Nothing is paid until a person approves it.
How it works
Read from the agreement, priced from the book, approved by a person.
- Read
Fox reads the agreement
Fox finds the rebate clause in the client's agreement and proposes the plan, with the clause, page and words it came from. You confirm it.
- Price
The month prices itself
On the 1st, the month just closed is priced from the invoices bought and the fees earned on the ledger. Nobody types a number.
- Approve
A person decides
The rebate waits for approval under your Solo or Four Eyes rules. Approved, it posts to the client's account and is paid in Payments out.
As flexible as your agreements
Any number of tiers, on the measure your agreement uses.
Every agreement is written a little differently, so the plan is data rather than a template. Count the tier on the face of the invoices bought in the month or on the fees earned. Apply the reached tier to the whole month, or band it so each slice carries its own rate and crossing a tier never changes the month by a jump. Cap it per month if the agreement says so.
Your client sees what the next tier is worth. Every priced month says how much more volume would have reached the next tier and at what rate. That is a sales conversation your account managers can have on the 2nd of every month.
One plan, every option
- Tiers on invoices bought or fees earned
- Whole month or banded
- An optional monthly cap
- No limit on the number of tiers
- Versioned, with who set it and when
Controls built in
Pricing that gives money back has to be pricing you can prove.
Never more than you earned
A rebate is always a share of the month's fees. It cannot exceed what the client earned you, and the cap holds on top.
The source stays attached
A plan read from the agreement keeps its clause, page and words, so anyone can see where every rate came from.
Changes are versioned
A new plan adds a version. The plan behind any past month reads back with the person who set it.
Late money is caught
Until someone decides, a month is repriced whenever the book changes, and the change is shown.
Four Eyes when you want it
Approving moves money, so it follows your approval rules. Refusing stops it and needs a reason.
Statements clients understand
Print or email the rebate statement from the client's file, with the tier reached and the math behind it.
Straight answers
What factors ask about volume rebates
How does a volume rebate work in FactorFox?
A client who sells you more in a month earns part of that month's fees back. The plan sets the tiers. On the 1st, FactorFox prices the month just closed from the book, proposes the rebate and waits for a person to approve it.
Do we have to build the tiers by hand?
No. Fox reads the rebate clause in the client's own agreement and proposes the plan, keeping the clause, the page and the words it came from. You confirm it. Building tiers by hand is there for paper that does not read cleanly.
How many tiers can a plan have?
As many as the agreement has. There is no limit.
What is the difference between whole month and banded?
Whole month applies the rate of the tier the client reached to all of the month's fees, which is the usual volume rebate. Banded rebates each band at its own rate, so crossing a tier never changes the whole month by a jump.
Can a rebate ever be more than we earned?
No. A rebate is always a share of the fees the client earned you that month, with an optional monthly cap on top. It can never exceed what you earned.
What if a payment arrives late or an invoice is reversed?
A month that has been proposed but not decided is priced again whenever the book changes, and the change is shown. If the figure moved after someone opened it, the approval is refused for that click so nobody approves an amount they did not see.
Who approves and how is it paid?
Approval follows your rules. Under Solo the verified operator posts it. Under Four Eyes one person reviews and a different person posts. Refusing needs a reason. An approved rebate posts to the client's account and is paid in Payments out, with a rebate statement you can email to the client.
Bring an agreement with a rebate clause.
We will let Fox read it in front of you, build the plan and price last month from a sample of your book.