A reserve is typical in factoring and can be thought of as a security deposit on the expected payment from your Marketplace.
Payability does not actually hold your reserve balance; it’s the non-advanced portion of your sales.
The Access Reserve is released when the corresponding Marketplace Payment is received by Payability.
Learn more about how Marketplace Payments in this Help article.
Depending on your fixed rate, we advance 70-90% of your gross sales and add these funds to your available balance. The remaining 10-30%, depending on your advance rate, is your Access Reserve balance.
The Access Reserve is calculated as a percentage of your Marketplace Balance.
For example, if your Marketplace Balance is $5,000 and your reserve rate is 20%, your reserve balance will be $5,000*0.2=$1,000.
If you have a loan with your Marketplace, your reserve balance will also reflect the amount not advanced as a provision for your loan payments. In that case, your reserve will be a combination of the ‘regular’ 10%-30% plus a reserve to account for your next loan payment.
For more information about the loan provision reserve, check out this Help article.