How Finqle assesses your company's creditworthiness, sets a credit limit and what happens when that limit is reached.
TL;DR
- Finqle assesses your credit limit using an external credit bureau check plus your payment history with Finqle.
- The limit determines how much Direct Payment volume can be outstanding to your company at once (
credit_usedversuscredit_limit). - When the limit is reached, new invoices for your company simply follow the standard, non-Direct Payment flow until existing invoices are settled.
How the credit limit is determined
- An external credit bureau check, a creditworthiness score based on your registered company data.
- Your payment history with Finqle, and that of your group companies, if any.
- The nature and volume of the contracts your merchants have registered for your company.
The limit is set per debtor company and reviewed periodically, or sooner if your payment behavior or credit profile changes materially.
credit_used versus credit_limit
Every Direct Payment invoice outstanding to your company counts against your credit limit (credit_used). Once credit_used equals credit_limit:
- New invoices for your company are not eligible for Direct Payment.
- They still go through Finqle's standard flow: administered normally, with payout to the merchant following your invoice's payment term instead of instantly.
- As soon as outstanding invoices are paid and
credit_useddrops, new invoices become eligible for Direct Payment again.
What this means day to day
- You are never blocked from receiving or paying invoices because of the credit limit. It only affects whether Finqle pre-finances your merchant instantly.
- No action is required from you when the limit is reached. It resolves automatically as invoices are paid.
FAQ
Can I request a higher credit limit?
Yes. Contact your Account Manager or info@finqle.com with recent financials if you expect higher invoice volume. Increases are subject to a new credit assessment.
Does reaching my credit limit affect my invoice due dates?
No. Your payment term with the merchant stays the same regardless of Direct Payment eligibility.
Will I be notified when my credit limit is close to being reached?
Not automatically today. If you expect a large volume of invoices, contact your Account Manager in advance so we can review your limit proactively.