When you onboard with Denim you will have a rate and terms for each job you sell to us. Here is a break down for a hypothetical $1000 job:
Receivable: This is the amount billed to your customer, in this case $1000.
Advance: This is the percentage of the receivable that Denim pays up front. It is typically 90% of the receivable. There are typically two components to the advance:
Carrier pay: Denim will pay the amount billed to you by your carrier. Let's say your carrier invoice for a job is $950 (95%). In this case, we would pay your carrier the entire amount even though your typical advance is only 90%. This is to ensure a positive experience for your carriers and that they're paid in one lump sum.
Client advance: Let's say your carrier invoice for a job is $850 (85%). In this case, we would pay your carrier in full, but there would be a 5% remainder from your advance. As the client, you are entitled to this difference which in this case would be $50.
Rebate: This amount is equal to the receivable minus the advance minus the fee. It is paid to you via Denim Cash, once your customer pays Denim in full for the job. For more information on Denim Cash check out this article.
Factor Fee: This is the percentage that you have agreed to pay for financing each invoice. It is collected at the time your customer pays Denim***. The factor fee is only charged for factored invoices. For non-factored invoices, other charges may apply, but you will not pay a factor fee.
***Although the fee is charged at the time of collecting, the fee amount is determined at the time a job is approved. If the billing amount ever changes, please note the factor fee cannot be changed because it is locked at the time of the approving the job. Therefore it is very important that you bill the correct amount on your first submission.