June 25, 2024

Clearco Funding Update: Increasing Capacity on Receipts for up to $1,000,000!

Gurman Sihota

At Clearco, we’ve been busy taking our ecommerce customers’ feedback so that we can tailor our product to fit even more seamlessly into their capital planning. That’s why we are excited to announce that Clearco will now fund customer receipts up to $1,000,000 USD! This means, the maximum amount of receipts that can be funded within a 60-day period is now up to $1 million. Should your ecommerce business have $1 million USD in available Clearco funding, it will be possible to apply it to receipt reimbursements, Invoice Funding, or a mix of both. As always, receipt reimbursements and Invoice Funding are subject to diligence and a single funding transaction still maxes out at $500,000.

We have heard loud and clear from customers who want flexibility to better mix-and-match both the funding of outstanding invoices and reimbursements on paid receipts. Such flexibility improves our customer’s capital planning and is especially critical as ecommerce companies begin preparing for their busiest times of the year, such as Amazon Prime Day and Black Friday Cyber Monday (BFCM).

The ability to fund more receipts than before means ecommerce brands don’t need to wait for large invoices before they can access Clearco’s Invoice Funding product. Rather, they can upload receipts of recent payments to suppliers, advertising platforms, and other qualified vendors and get access to Clearco’s fast and flexible funding.

How Clearco’s Receipt Funding Works

The great thing for existing Clearco customers is that receipt funding works just like Invoice Funding. For new Clearco customers, it’s easy to sign up and get funded in as little as 24 hours! 

Once the customer has signed up for an account and connected their revenue and bank account data to Clearco, we quickly review the brand’s application. The funding amount that Clearco determines is available to the business can then be applied to either invoices or receipts, once diligence is completed.

Once a customer has uploaded a receipt of recent payments made to suppliers or vendors, Clearco reimburses the business via a deposit of cash directly in their bank account. The business can use this working capital to support the growth of their business, whether it be investing in additional inventory or launching new advertising campaigns.

The fees and payment structure are identical to Clearco’s Invoice Funding, ensuring customers can achieve their capital planning goals: mixing-and-matching how they use Clearco’s working capital in a manner that works best for their business needs.

The Benefits of Receipt Funding with Clearco for Ecommerce Brands

  1. You only use Clearco receipt funding when you need it

With receipt funding, ecommerce brands can access capital after approval when they have specific receipts which they want reimbursement for. Customers thus only pay for capital when they need it and are not being saddled with extra funds (and fees!). 

  1. You don’t begin payments on the Clearco advance until you use it (and you don’t pay fees until then either)

Clearco’s receipt funding offers ecommerce companies a way to receive cash in their bank account without the traditional cash-in-bank merchant cash advance (MCA) business model of debiting a customer’s revenue account whether the customer has drawn funding or not. With receipt funding, customers only pay Clearco when they have received cash reimbursement for a receipt.

  1. Your revenue accounts are not debited daily

Most traditional cash-in-bank revenue-based financing (RBF) providers debit their customers’ accounts daily. Clearco debits one time each week on the same day, making capital planning much easier for ecommerce brands.

  1. Your payment amounts are “fixed”

Traditional RBF providers’ payments are based on a “remittance rate” which means customers commit to paying a fixed percentage of their daily revenues. As customers’ revenues grow in busy periods such as Black Friday Cyber Monday (BFCM), RBF providers take larger and larger chunks of their daily sales. Just like with Clearco’s Invoice Funding product, receipt funding customers pay a set percentage of their revenue but only up to a capped amount weekly. That means if a business’s revenue is steady or growing, they pay a predictable, weekly “fixed” amount but if revenues fall, payments will shrink. 

This helps ecommerce brands retain more revenue and cash flow as they grow, allowing them to reinvest in their business rather than paying their capital provider.

Clearco is Committed to Flexible, Fast Capital for Ecommerce Businesses

Clearco is excited to announce increased funding of receipts for its customers, especially as the busy season for inventory buying begins. It’s important to us that Clearco provides our ecommerce brands multiple funding avenues to support their growth strategies. If your ecommerce business wants to explore funding, sign up to learn more, upload an invoice or receipt, and get funded!

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Gurman Sihota
Strategic Finance Associate, Clearco

Gurman Sihota is a Strategic Finance Associate at Clearco. Prior to Clearco, Gurman was an Investment Banking Associate at Scotiabank. A University of British Columbia (UBC) graduate, he pursued a Bachelor of Commerce, specializing in Finance. When he isn’t busy diving deep into the DTC ecommerce space, Gurman enjoys trying to learn how to hit a golf ball and trying new fitness classes.