Funding Windows and Pricing Fields
In this guide, we'll explore and understand the full set of funding windows and pricing fields, learning how to configure them, apply them effectively, and manage associated fees and repayment terms.
1️⃣ What Are Funding Windows?
A funding window defines when and under what conditions an invoice, purchase order, or other financial instrument can be financed.
Think of it as the eligibility rulebook: It sets the timing and criteria for when financing is available.
Each deal can have multiple funding windows with different conditions: For example, one for short-term financing and another for premium or larger transactions.
2️⃣ Basic Funding Window Configuration
🏷️ Funding Window Name
What it is:
A unique name for this funding window.
Purpose:
Helps distinguish between multiple financing options.
Examples:
“30-Day Standard Financing”
“Premium Quick Funding”
📅 Funding Window Range (Start / End)
What it is:
The time period when an instrument becomes eligible for financing.
Purpose:
Defines the exact window when funding can occur relative to the issue date or due date.
Examples:
“10-30 days after issue date” → Eligible between day 10 and 30 after creation.
“5-15 days before maturity date” → Eligible from 15 days before due date up to 5 days before.
Business Impact:
Prevents premature or last-minute financing requests.
🔁 Term Calculation Direction
What it is:
The reference point used to calculate the window timing.
Options:
After issue date → Counts days forward from invoice creation
Before maturity date → Counts days backward from due date
Why it matters:
Aligns funding timing with either creation or payment workflows.
3️⃣ Tenor and Duration Settings
⏳ Max Tenor
What it is:
Maximum number of days from funding to expected repayment.
Purpose:
Defines how long funds remain outstanding.
Example:
Max Tenor = 90 days → repayment must occur within 90 days.
➕ Max Maturity Extension
What it is:
Extra days allowed beyond original due date.
Purpose:
Provides flexibility for delayed payments.
Example:
Invoice due March 1 + 20-day extension → final payment accepted until March 21.
📆 Max Instrument Term
What it is:
Total maximum lifespan from invoice creation to repayment.
Purpose:
Sets an absolute limit for the entire transaction.
Note:
This field works together with Max Tenor and Max Maturity Extension to define repayment deadlines.
4️⃣ Additional Filtering Conditions
💹 Utilisation-Based Conditions
Condition | Description | Business Use |
Above Min Utilisation | Eligible only if deal usage exceeds a set threshold | “Premium rates after $1M usage” |
Below Min Utilisation | Eligible only if usage is below a threshold | “Introductory rates for first $500K” |
💰 Face Value Conditions
What it is:
Defines minimum and maximum eligible invoice values.
Purpose:
Allows tiered pricing by transaction size.
Examples:
Small window: $1,000 - $50,000
Large window: $100,000 - $5,000,000
🏦 Payment Method
What it is:
Specifies eligible payment methods (e.g., Wire, ACH).
Purpose:
Apply different terms or rates by payment type.
5️⃣ Fee Structure and Pricing
⚖️ Fee Split Rules
Type | Description | Example |
Ratio-Based | Cost shared as percentages between parties | Seller 70%, Buyer 30% |
Fixed Fee Split | One party always pays a fixed minimum | Seller always pays at least 2% |
Tenor-Based | Fee payer changes depending on timing | Seller pays early, Buyer pays during extensions |
💵 Core Financing Terms
Advance to Seller
Definition: % of invoice paid immediately to seller.
Example: 80% → Seller gets $80,000 on a $100,000 invoice.
Purpose: Controls liquidity vs. funder risk.
Principal Calculation Method
Options:
Instrument Fundable Portion
Present Value of Instrument Fundable Portion
Impact: Determines whether fees apply to full or discounted amounts.
Fee Collection Timing
Fee Type | Option | Description |
Seller Interest | Upon Disbursement / Upon Repayment | Timing of seller fee deduction |
Payer Interest | Upon Disbursement / Upon Repayment | Timing of buyer fee collection |
📈 Annualised Fees (Cost of Financing)
Fee Components
Field | Description | Example |
Annualised Fee Name | Label for each fee (e.g. Base Rate, Risk Premium) | “Processing Fee” |
Margin | Fixed annual % profit | 3.5% margin = 3.5% yearly |
Floating Fee Index | Market-based reference rate | SOFR, LIBOR |
Total Annualised Fee | Sum of Margin + Floating Rate | 2% + 4% SOFR = 6% total |
💳 Additional Charges
Charge Types
Type | Description | Example |
Flat Fee | Fixed $ per transaction | $50 per invoice |
Percentage Fee | % of face, fundable, or principal value | 0.25% processing fee |
Collection Timing
Timing | Description |
From Seller Upon Disbursement | Deducted from advance |
From Seller Upon Repayment | Collected at settlement |
From Payer Upon Disbursement | Charged upfront |
From Payer Upon Repayment | Added to final payment |
6️⃣ Late Payment Management
⌛ Grace Period Settings
Late Payment Grace Period:
Extra days after due date before penalties apply.
→ Example: 5-day grace = penalties from day 6
Continue Accruing Standard Fee:
Choose whether normal interest continues during grace period.
⚠️ Late Fee Structure
Fee Type | Description | Business Logic |
Grace Period Fee | Applied during grace days | Lower rate to encourage prompt payment |
Post-Grace Period Fee | Applies after grace expires | Higher penalty (e.g., 18–24% annually) |
✅ Summary
Funding windows and pricing fields together define:
When instruments are fundable
Who pays fees and how much
How repayment timing and risk are handled
Use them to:
Align financing terms with your risk appetite
Offer differentiated pricing tiers
Control liquidity and profitability at a granular level