As you begin working with Payability you may come across some unfamiliar terms. To make it easier for you, here are some common terms explained.
Every morning we purchase your previous day’s shipped gross sales - these are called “receivables.” If you’re an Amazon seller, only orders that are marked as shipped can be purchased and advanced.
Once purchased, we add 50-90% of those funds to your available balance. The remaining funds not advanced are reflected in your Reserve Amount.
For more information about Receivables Purchased, check out this Help article.
Selling Platform Charges:
This includes all charges, fees, or withheld amounts imposed by your marketplace. These are deductions from your total marketplace balance.
If you sell on Amazon, this will include FBA fees, customer refunds, and withheld balances.
Heads up: These types of transactions will lower your available balance.
For more information about Marketplace Charges, Refunds and Holds, check out this Help article.
The Marketplace Payment is the payment Payability receives directly from your marketplace or the repayment debit from your bank account.
There are 2 ways Payability is repaid for the sales we advance you daily on your marketplace (Instant Access):
- Directly from the marketplace payment. Payability is the deposit account on your marketplace. After each marketplace payment is deposited into our bank account, we are repaid for the sales we have advanced to you, and the corresponding ‘reserve’ is released to your Available Balance. The reserve is the portion of sales we did not advance to you.
- Bank account debits (ACH debits). Your own bank account is the deposit account on your marketplace. After each marketplace payment is deposited into your bank account Payability will initiate a same-day debit for the percentage of sales we had previously advanced to you. The remaining amount of the marketplace payment is your “reserve” and is free for you to use as Payability did not advance that amount to you.
Keep in mind, we have already advanced a portion of these funds to you. This means that the Marketplace Payment will not be released to your available balance in full; we will release the corresponding reserve amount which we have not previously advanced.
For more information about Marketplace Payments, check out this Help article.
Your Reserve Amount is the portion of your sales that have not been advanced.
A reserve is typical in factoring and can be thought of as a security deposit on the expected payment.
The reserve is released after the corresponding Marketplace Payment is received by Payability.
If you have an outstanding Amazon Loan, your Reserve Amount will be broken down to show your “regular” Reserve for the Instant Access or Instant Advance and your Loan Provision Reserve.
For more information about your Reserve, check out this Help article.
Your available balance reflects the funds available for you to transfer.
This is the amount of your available balance that you have transferred to your bank account. You can view your requested transfers under the transfer report. For more information on the transfer report check out this Help article.