[Limited Release] Introduction to Invoice Advance

This content covers a different version of our accounting software. Would you like to learn more about invoices with Wave?

As of August, 2019, Wave has discontinued Invoice Advance. No new offers can be taken, but repayment for outstanding advances will continue under the same terms. Thank you for using Invoice Advance.

With Invoice Advance, you can quickly access funds from invoices before they're paid. The terms are simple and repayment is automatic — no need to let cashflow issues hold you back.

United States

The basics

An invoice advance gives you access to cash for a portion of an invoice now, rather than waiting for your client to pay you. When your client pays their invoice, Wave is automatically repaid from these funds.

Under Banking > Advances, you’ll see a list of invoices eligible for advance, as well as advances you’ve received or that are due.

To accept an advance, click View Offer on the invoices tab of the Invoice Advance page.

For any invoice eligible for an advance, you can receive 80% of the total invoice amount. For example, if you sent your customer an invoice for $1,000, you’d be eligible for an $800 advance.

FAQs

What is an Invoice Advance? How does it work?

An Invoice Advance is a working capital offering where Wave purchases a participation in your open invoices. Through this program, we’re able to give you access to 80% of the amount owed to you up-front.

Wave gets paid back automatically when your customer pays their invoice, along with a flat 2% fee on the advance.

When will I receive the advanced funds I requested?

If your advance request is approved, you’ll receive the funds by the next business day.

What’s the fee? When do I pay it?

Wave will charge a 2% advance fee on the amount you receive. For example, for a $1,000 invoice where the advance amount is $800 (80%), you would pay a fee of $16.

This is a flat fee for the advance. It is separate from the processing fees from Payments by Wave.

You’ll pay the advance fee when you repay the advance, which happens automatically when your invoice is paid.

How do I pay back my advance?

Wave will automatically debit your bank account for the amount of the advance plus the 2% fee, three to five days after your customer pays the invoice. Ensure the funds are in your account on day three.

Can I cancel my advance?

If you decide you don’t want the advance funds, you can cancel an advance up to two business days after you requested it by contacting our customer support team. In other words, you can cancel the day you request the advance and the following business day. After those two days, you cannot cancel the advance and will need to repay it as normal when your customer pays the invoice.

What happens if I delete an invoice I received an advance for?

Deleting an invoice you have received an advance for will immediately initiate the repayment process, according to Wave’s Terms of Service.

What happens if I reduce the total amount of an invoice I received an advance for?

Reducing the total of an invoice you received an advance for will immediately initiate the repayment process, according to Wave’s Terms of Service.

How do I account for an Invoice Advance?

Read our accounting FAQ.

Canada

The basics

An invoice advance gives you access to invoice funds now, rather than waiting for your client to pay you. Repayment is in four instalments and begins automatically, starting two weeks after you receive the advance. You pay back the funds in four instalments every two weeks.

Under Banking > Advances, you’ll see a list of invoices eligible for an advance.

To accept an advance, click View Offer on the invoices tab of the Invoice Advance page.

View advances you’ve received under the Advances tab and upcoming repayments for active advances under the Scheduled Repayments tab.

View all the advances you’ve taken and repayments you’ve made under the History tab.

FAQs

What is an Invoice Advance? How does it work?

An Invoice Advance is a loan that enables you to borrow 100% of an invoice due to you in Wave and repay the funds over 8 weeks, plus a fee.

You’ll pay back the funds automatically in four installments.

For example, if you take out an advance for $1,000 on April 1 with a 3% fee, you repay $1,030 in total ($1,000 + 3%).

Your first repayment of $257.50 (¼ of the total owed) is due on April 15th, two weeks after you received the advance funds. Your three remaining repayments are for the same amount and are withdrawn automatically every two weeks until the advance is repaid in full.

When will I receive advanced funds?

If your advance request is approved, in most cases you’ll receive the funds by the next business day.

What’s the fee? When do I pay it?

Wave will charge a percentage on the amount you receive. For example, for a $1,000 invoice with a fee of 4%, the total fee is $40. You’ll pay ¼ of the fee back with each repayment installment.

How do I pay back my advance?

Wave will automatically debit your bank account on a biweekly schedule over 8 weeks. You can view your scheduled repayments under Banking > Advances > Schedule Repayments. Ensure sufficient funds are in your account on the day repayment is scheduled.

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