Factoring with CopeCart is a smart way to manage payments more efficiently. Companies can sell outstanding invoices to receive cash immediately. There are some conditions that must be met and a liquidity check. If this is passed, payment is made on the next scheduled payment date.
Factoring is a practical option that improves cash flow and minimizes the risk of non-payment, and it is currently only available to customers in Germany.
How to use factoring at CopeCart as a vendor
Factoring offers vendors the opportunity to sell their products and receive money immediately. It should be noted that CopeCart sets specific requirements that must be met in order for vendors to use factoring.
Factoring Requirements:
Successful vendor KYC validation: Before an order can be considered for factoring, you as the vendor must have successfully passed KYC (Know Your Customer) validation.
Approved Products: The products listed in the order must have been approved by CopeCart. Find out more here.
Price range of the order: The total price of the order is in the range of 100 to 20,000 EUR (gross).
Product type: Factoring is available for all product types.
Payment option: Factoring is only available for payment option "invoice".
Payment plan: Factoring can be used for one-time payment and installment payments (please also see point 7).
Installment payments: Installment payments must be made monthly, may not have more than 5 outstanding installments, and may not have a specified "2nd installment in ... Days".
Addons: If the order contains addons, they can only be considered for factoring if they also meet the criteria described above.
Checkout: Only orders completed via Checkout qualify for factoring. Phone quotes and store orders are excluded.
Only for buyers from Germany: Factoring is only available for customers from Germany.
Upsells: Orders that contain upsells do not qualify for factoring.
These are the main conditions and criteria that should be considered when factoring orders with CopeCart.
Factoring Activation
You can easily activate factoring in your account.
1. Log in to your CopeCart account.
2. Go to settings, then to account settings.
3. Go to the "Factoring" section and activate the switch under the Option "Factoring".
4. Confirm the pop-up.
Done! Factoring for your products is activated.
Liquidity check
Even if factoring is enabled, not all orders will pass the liquidity check.
Prices for the liquidity check:
for B2B orders = 9,99 EUR (net) + 19% VAT.
for B2C orders = 4,99 EUR (net) + 19% VAT.
The amount of the liquidity check will be charged to the vendor in both positive and negative cases. This means that even if the factoring is rejected, fees are due. The vendor can check the factoring status in the Transactions -> Purchase Order overview.
Fees in case of negative liquidity check: If the liquidity check results in a negative answer, only fees for the liquidity check will be charged.
In case of a positive answer after the liquidity check, the factoring fee includes:
1. liquidity check for B2B orders = 9,99 EUR (net) + 19% VAT;
for B2C orders = 4,99 EUR (net) + 19% VAT.
2. processing fee 2,5 EUR (net) + 19% VAT.
3. factoring success fee 8,99% (of the order amount) + 19% VAT.
The factoring fee will be deducted from the vendor's disbursement and the total amount of the fee will be displayed in the disbursement invoice. In addition, after the disbursement, the Vendor can check the detailed information of the orders in Account Settings -> Disbursement Information -> Paid Disbursement -> Service Fees.
When will you receive the payout if the liquidity check is successful?
After successful liquidity check, the vendor will receive the full amount of the order on the next payout day, depending on the set payout interval. If CopeCart receives the positive answer after the liquidity check on the payout day, the full order amount will be included in the next scheduled payout.
In case of a positive response after the liquidity check, the Vendor does not have the option to make changes to the purchase order, such as:
pause the order
cancel the order
upgrade or downgrade the price
make the refund
Adding the affiliate
If the order was sold by an affiliate or seller or/and has a JVP partner, the factoring fee will not affect their commissions.
FAQ Beta Version
What is the maximum number of monthly installments the financing can be extended to?
Currently, installments are limited to a maximum of 6 monthly installments. That means the initial payments plus 5 more.
What is the annual interest rate for the customer?
Neither the customer nor you as a vendor will incur interest at this point.
Does the factoring company perform both genuine and non-genuine factoring?
Our partner company only offers "real factoring".
We are excited to bring you this new feature and are confident that it will take your payment processing to a new level. If you have any questions or suggestions, please do not hesitate to contact us.
Thank you for your trust in CopeCart!