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Paying an invoice with Settle Working Capital (Amortized Payment Terms)
Paying an invoice with Settle Working Capital (Amortized Payment Terms)

Learn how to use Settle Working Capital (fka Extended Payment Terms)

Anna Briggs avatar
Written by Anna Briggs
Updated over a week ago

If you're approved for Settle Working Capital's financing option, you’ll be able to extend terms on most invoices*, regardless of the terms provided by the vendor.

When you utilize Settle Working Capital with an amortized payment schedule, Settle will pay the vendor on your behalf and you'll be charged a number of installments over a selected period of time. Reach out to support@settle.co for additional extensions on a case-by-case basis.

*Please review your financing agreement for detailed restrictions and terms and conditions.

Extending payment terms on an invoice

  1. Log in to your Settle account and upload a bill. (Check out this article if it's your first time.)

  2. Once you see the bill in your Unscheduled queue, click to open it, then click Proceed to payment at the bottom right corner of the bill screen.

  3. You'll see options to Pay from your bank account or Finance payment.

  4. Select which date you'd like Settle to pay your vendor and how many days you want to extend the repayment for, then hit Proceed.

  5. Review and accept the the Commercial Financing Disclosure Table and Business Loan and Security Agreement. This is the legal agreement between you and Settle that states:

    • It is Settle's responsibility to pay this bill.

    • You agree to pay us back on the scheduled dates.

    • The principal and interest associated with the extensions, and that you agree to pay the principal and interest associated with the extensions.

  6. That's it—your payment is scheduled and good to go. Your bill will be paid on the date you selected, and we'll debit your account 30 up to 120 days later.

  7. Seven days before your payment is due to Settle, we'll send you an email reminder that includes the option to extend another 30 days if you'd like (and if available). You may do this an additional 3 times, for a total extension of 120 days.*

Why can't I select the Financing option?

If you qualify for financing with Settle, we’ll provide you with:

  • Your max terms, which include the maximum loan amount that can be used for one bill or spread over many bills

  • Your maximum allowable number of extensions

There are a few scenarios that may prevent you from being able to select the Financing option when paying a bill (note that this list may not be comprehensive):

  1. Your Application is still being processed, and reasons could include:

    • Underwriting is still underway

    • You still need to connect your bank account(s) and accounting software (Settings > Accounting)

  2. Based on your Application, your business does not qualify for Settle Working Capital at this time

  3. You’ve reached your max terms.

  4. You've reached your maximum allowable number of extensions.

  5. The bill amount is less than the allowable threshold determined by your financing agreement

FAQ

What does it cost?

The cost of your loan is determined in accordance with our underwriting policy and the creditworthiness of your business, and will be shared with you by a member of our Customer Success team.

I just started using Settle and uploaded my first bill. Can I extend payment terms right away?

Financing will be available as soon as Settle processes and approves your application. This requires you to link your bank account and accounting software in Settings > Bank accounts and Settings > Accounting.

Underwriting is typically completed within a week of this sync. If your business is approved for financing, you’ll see the Financing option for all qualified bills.

Will my vendor know that I am extending payment on their invoice?

Your vendor will not know that your payment has been extended; however, they will see that the payment is being processed via Settle.

Can I repay early?

You can repay early by opening the bill and clicking on View, under the payment tab. You'll then be taken to a new screen displaying your repayment schedule, where you will see a Repay early button at the bottom.

What are the alerts for bills that are suggested for Settle Working Capital?

Settle utilizes versatile algorithms that analyze multiple factors of your bills to alert you about bills that may qualify for extended terms through Working Capital. You may see these suggestions on a bill or on the Dashboard when you login. These alerts are updated regularly to surface bills that you could consider financing through your Working Capital terms.

What is Settle Working Capital (WC) or Extended Payment Terms (EPT)?

Both of these refer to a customer's credit profile and their ability to finance payments through terms made available on their account. You can review your Working Capital limits via the Credit Eligibility tracker on the dashboard. Credit Eligibility represents the maximum amount of credit for which the business qualified when we last evaluated its creditworthiness and credit profile.

Questions? Get in touch — support@settle.co

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