This integration is only available for Belgian Teamleader customers and customers on a Move or Boost pricing plan.
We at Teamleader went to work to answer one of the most pressing questions from entrepreneurs: "How do I insure my cash flow?" An answer can be found through the integration with KBC On Demand Financing. You will find out all there is to know about it in this article.
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- What is On Demand Financing?
- Which invoices are eligible for financing?
- How does On Demand Financing work in Teamleader?
- How much does it cost?
It is important to know that you can only use On Demand Financing if you have a KBC current account. Read more about it here.
What is On Demand Financing?
With On Demand Financing, a form of 'Factoring', a third party pays the invoice for your customer. They then take responsibility for following up the amount due from your customer. This way, you do not have to wait for payments from customers and you immediately have capital to pay for example your suppliers.
A financial institution, in this case KBC, pays the amount of the invoice that you created for your customer. This way, you immediately have the amount owed in your account. KBC then takes up the actual payment with your customer at a small percentage of the entire invoice. This is quite a burden off your shoulders, because once your invoice has been accepted by KBC, they take all the risk.
These are some of the benefits for you:
- No need to send extra reminders. This way, you'll have gained some time again.
- Thanks to On Demand Financing, your money is in your bank account the next working day.
- This way, your cash flow is maintained and you can guarantee the wages of your employees, or you can continue to buy stock.
- You decide directly from Teamleader which invoice you want to finance.
Which invoices are eligible for financing?
Not every invoice in Teamleader is eligible for On Demand Financing. There are some rules of thumb.
- Invoices with an amount between €2500 incl. VAT and €25 000 incl. VAT.
- Partial prefinancing is not possible, the financing must be for the full amount of the invoice. For example, you cannot have an invoice of €30 000 financed for €25 000.
- Invoices with a payment term of minimum 15 or maximum 120 days
- Invoices within 15 working days after the invoice date
- Invoices to companies or governments
- Outgoing invoices in euro to your Belgian customers
- Advance invoices
- Invoices already (partially) paid or (partially) credited
- Invoices to private individuals (B2C)
- KBC will carry out a check on, among other things, the presence of a VAT number.
- Invoices to non-Belgian customers
- Invoices in a currency other than the euro
- The total invoice financing may not exceed €100 000 including VAT.
- This means that as soon as an invoice has been paid by your client to KBC, it will be deducted and you can refinance up to a maximum amount of €100 000.
My invoice matches all of the above requirements, why is it still not eligible?
- After we've checked the basic requirements above and an invoice is not eligible, we'll provide a specific reason (e.g. not a Belgian customer, payment term or amount is wrong,...) as to why this is. You can find that reason in the financing widget.
- If an invoice is eligible because it meets the requirements, Teamleader then sends this invoice to KBC.
- KBC however always does an extra check to see if your invoice is eligible or not. If it isn't, you'll receive the following message: "Based on your customer's VAT number, your booking date and payment terms, KBC has determined that this invoice is not eligible for on demand financing."
- Teamleader does not receive the reason why an invoice is not eligible, so we can't provide this reason to you. The final decision is made by KBC and we have no further influence over the rejection of an invoice.
How does On Demand Financing work in Teamleader?
As mentioned before, you can only use this integration if you have a KBC current account. In addition, you need admin rights in Teamleader to set up the integration. If this is the case, you can set up the integration this way:
- Click on your profile picture in the top right-hand corner in Teamleader
- Choose Integrations
- Search for KBC On Demand Financing in the Teamleader marketplace.
- Add the integration. Use the KBC Sign app or the KBC Business dashboard to authorize your KBC account with Teamleader. After 60 days, user authentication is required again.
- Create an invoice in Teamleader or choose an existing invoice that you want to finance. Each existing invoice will be checked on eligibility for financing.
- Please take into account the conditions for financing mentioned above.
- Make sure that draft invoices have been booked, only then can KBC check whether the invoice meets the requirements for financing.
- Have you just created your invoice? If so, the On Demand Financing widget will be given the label 'Waiting for approval'. In a moment you will see if the invoice is eligible.
- Keep in mind that you cannot have invoices financed in bulk, you have to go through this process per invoice.
- If the chosen invoice is eligible for financing, you will see the amount that KBC will eventually pay you if you choose to have that specific invoice financed. You will therefore always see the finance fee in advance.
- Is the button 'Request financing' grey? If so, you must first email the invoice to your client before you can request financing. This is a legal obligation: there must be an official document from one party to the other so that a third party can buy it.
- Click on Request financing. Then you have to complete the process via the KBC Sign app. You have 6 minutes to do this for security reasons.
- Once you have signed via your smartphone, KBC will pay out the amount due to you within 24 hours. In the meantime, KBC will follow up the payment with your customer: the end customer will be informed by email of the on demand financing and the fact that the amount must now be transferred to a bank account different from yours.
Note: What if my customer still paid me and not KBC?
In this case, it is your responsibility to transfer the amount you received from your customer to KBC.
- You can follow the status of the payment via the detail page of the invoice. The invoice is automatically marked as paid in Teamleader as soon as the payment has been transferred from KBC. You will also find this in the activities accompanying your invoice.
- If the label Financed is visible in your On Demand Financing widget, this means the invoice was paid to you by KBC, but your customer didn't pay the invoice to KBC yet.
If the label Settled is visible in your On Demand Financing widget, this means that the invoice was paid to you by KBC, and your customer also paid the invoice to KBC.
- KBC will provide you with a cost overview to process in your bookkeeping.
How much does it cost?
KBC deducts a certain percentage from each invoice it finances for you, this cost is visible as the finance fee in your On Demand Financing widget. How much that fee is depends on several factors. For example, KBC will examine the creditworthiness of your client and take into account the payment term and booking date of your invoice.
The widget will immediately show you how much you will get paid and what the finance fee is. After you've requested financing and it was accepted, the invoice is the property of KBC and they take all risk. KBC therefore does not take your financial capacity into account, but the financial capacity of your customers.
Any further questions? Then take a look at the KBC website for more information on On Demand Financing.