If your business is approved for financing by Settle, you will be able to apply Settle Working Capital (fka Extended Payment Terms) to qualifying invoices. When financing is applied, Settle will pay your vendor upfront, and you will repay Settle the financed amount in 30-180 days plus a financing fee.

Since Settle pays the vendor on your behalf when you apply financing, your liability for this payment shifts from the vendor to Settle. In order to ensure your connected bookkeeping software stays up to date, we adjust your accounting ledger to reflect this shift in liability.

When you connect with NetSuite (see Getting started with NetSuite), Settle will automatically add a Settle Loans Payable account to your NetSuite Chart of Accounts. This is a Current Liability account, used to represent your balance owed to Settle due to financing and subsequent principal repayments.

Once NetSuite has been connected, map the following two accounts (Settings > Accounting):

This section shows how each step in the financing process will be synced to your NetSuite account, using an example.

(For a high-level summary of events involved in financing, see this help doc.)

A Bill from The North Face due on 9/1/2022 is uploaded to Settle. The Bill is synced to NetSuite.

You decide to finance this Bill on 9/1/2022. Settle creates a fee Bill as of that date, which is then synced to NetSuite.

Tip: For customers who use Settle in conjunction with other two-way syncing bill payment softwares, we include a Memo for the Bill that says “No Action Required: Invoice scheduled to be paid in Settle”. This is a reminder that if the Settle Bills get pulled into your other software, that you do not need to take any action to pay them outside of Settle.

Your automatic payment to Settle processes for the fee Bill created above. A Bill Payment is synced to NetSuite as of the date of fee payment.

Since Settle paid the original bill on your behalf, you now owe Settle the principal amount [plus financing fees]. We mark the original Bill as paid and create a new liability to Settle.

We create a new Journal Entry to transfer the liability balance that you are financing from Accounts Payable to the Settle Loans Payable liability account (or whichever account you mapped for Settle loan principal).

We link this Journal Entry to the original Bill, reducing the Bill’s balance by the amount being financed

⚠️ If you need to edit this journal entry after it has been linked, NetSuite will unlink it from the original Bill. You will have to manually apply it again (Make Payment > Select the Journal Entry)

Upon maturity of the EPT loan, we record the repayment made to Settle. It nets out the impact of the original financing transaction on the Settle Loans Payable account.

The following screenshot illustrates the General Ledger impact upon transaction completion. The net effect is that you have repaid Settle $1,015, and incurred $1,000 of Office Supplies expense, and $15 of Interest Expense.