Working Capital Advances are a new credit service provided to a subset of customers who have credit profiles. Eligible customers have the option to create a working capital advance request within their account, where funds are disbursed to their account and not to a vendor account. This functions similarly to a typical loan within the Settle credit profile. The advance will be an available amount up to a sublimit that is within the total credit profile limit. It is important to note that this is not a limit above and beyond the credit profile, but rather within it.
Before you have access to an WCA, you will need to ensure multi-factor authentication is enabled on your account. You can see more information about this security setting in our article on Setting up multi-factor authentication (MFA).
Creating a Working Capital Advance request
Step 1: Accessing the Working Capital Advance Module
To begin the process of creating a working capital advance request, you will need to head to your Dashboard. In the top of the page, you will see an option to "Create Advance" beneath your credit profile progress graph. This option will only be visible to users with the permissions to create payments in your account.
Step 2: Processing the Advance
Once you have accessed the working capital advance module, you will see the amount you have available to advance. Input the amount* in USD you would like to process. The amount you can input will follow the same minimum requirements as any financed payments.
Next, input the bank account you would like the funds deposited into in the "Account to Credit" dropdown. Then, input the bank account you would like the funds to be repaid from in the "Repay Settle from" dropdown. Both of the dropdowns reflect the active bank accounts you have setup in your settings.
Finally, set the repayment period and click "Proceed".
Step 3: Confirming the Advance Details
On the working capital advance details page, confirm the details of the advance, including the payment timeline. Make any final changes and click "Proceed".
Step 4: Reviewing the Offer Summary
Next, review the Offer Summary page. Here, you will need to click that you acknowledge the receipt of the disclosure as well as that you agree to the loan agreement. Once you have reviewed and agreed to the terms, click "I Accept" to process the Advance.
This advance will now process following our usual payment processing timelines as an EPT ACH - Financed Domestic payment. See payment timing information here.
If you have payment approvals setup in your settings note that this advance will also follow those same permission rules. See payment approval workflow information here.
Step 5: Viewing Your Advance
Congratulations, you have successfully created a working capital advance request! You will now find this Advance listed within your Payments page.
*100% of the amount financed will be deposited to your account. There are no hidden fees or processing costs outside of your usual loan interest structure.
Tracking a Working Capital Advance Request
You will find a dedicated section of your credit profile progress graph on the Dashboard that reflects your amount of advances that are outstanding.
The advance will also now display as a repayment within the Cash outflow graph as part of all scheduled repayments
FAQ
Why does Settle offer working capital advances?
Business needs may arise where a short-term loan can help the business to bridge small cash flow gaps without seeking assistance from another lender.
What can working capital advances be used for?
To cover short term business expenses as: Advertising, payroll, taxes
Purchases such as: inventory, equipment, supplies, vendor payments
Are working capital advances available on bullet terms?
No. Working capital advances may only be financed on amortizing terms.
What are the repayment terms on a WCA?
The total amortization length on a WCA will be no longer than your existing financing term or 120 days amortization, whichever is shorter. The repayment structure is also on a biweekly schedule regardless of your typical repayment windows (i.e. 30 days).
Are there additional fees on a WCA?
A WCA has the interest rate as outlined in your loan agreement. There are no additional fees associated with the WCA. A WCA also does not incur the standard transaction fee as outlined for transactions within your subscription pricing plan.
Why am I not seeing the button to take an advance within my account?
This service is provided to select Settle customers. Reach out to your customer success associate if you would like to discuss the options for this service in your account.
If you previously had this option available on your account but no longer see it, note that your account may have become ineligible for future Advances.