BlueTape AR Advance FAQ

BlueTape AR Advance for your existing accounts receivable is designed to help you onboard customers quickly and seamlessly, while turning their unpaid invoices into immediate cash flow. In this document, we cover some of the most frequently asked questions regarding the AR advance for your existing AR.

What advance can I expect to get on my existing AR?
Once BlueTape has access to your AR, aging report and customer transaction history, our team will review your receivables and approve an advance of up to 80% of eligible invoices.

For invoices that are less than 30 days past due, a lower advance rate may be offered on a case-by-case basis.

When do I get the final payment or reserved amount on my invoices?
You will receive the reserve balance once BlueTape has been fully paid by your customer. The final payment will be released minus any outstanding fees (including your discount fee and any applicable late fees).

How do I add existing customers to your BlueTape account?
If your ERP or accounting system is supported by BlueTape integration, your customers can be synced automatically through the integration. 
If your ERP system is not supported, you can simply provide a customer list and our customer success team will add them to your account

Who would choose the terms for each customer?
The default term for all approved customers is 30 days.You can choose a different term for your customer or allow your customers to choose 30, 60, or 90 day terms. 

What are the payment options available ?
You can choose between two flexible payment structures for your customers:

• Balloon Payment: Your customer pays the full balance at the end of the selected term (30, 60, or 90 days).
• Weekly Payments: For 60- or 90-day terms, your customer can make weekly payments after the first 30 days. This option allows them to access a lower rate on extended terms.

Who is responsible for paying BlueTape’s AR Advance fees?
Typically, the supplier is responsible for paying BlueTape fees. A common practice among our customers is 

• The supplier covers the fees for 30 days.
• If the customer needs terms longer than 30 days, the customer becomes responsible to the extended-term fees. For the customers to take on extended-term fees, they must sign a BlueTape credit agreement. 

Who would collect  payments from customers, and where do they pay their invoices?

• Sellers will send their invoices (or resend current invoices) through their BlueTape account. 
• Customers are required to connect their bank account or add a card and make payments directly to BlueTape. 
• Once they are added to your BlueTape account and are approved, they will receive a Notice of Assignment confirming that all payments must be made to BlueTape. 
• Customers can pay by wire outside the BlueTape app, but we recommend they pay through the BlueTape portal. This keeps their account clear, simplifies their records, and avoids reconciliation issues for their accounting.

What happens on the due date of an invoice?
The BlueTape app includes built-in payment reminders. Your customer will automatically receive reminders 3 days before the due date, on the due date itself, and daily after the due date until payment is made.

This ensures your customers always know when payment is due and removes the excuse of “forgetting” the invoice date.

What happens if a customer is late with payment?
If a customer misses their payment and the grace period passes, our team will follow up directly with them to bring their account current. You will also be notified that the payment is late.

If we are unable to reach the customer or they fail to respond, our team will contact you and work with you to get in touch with the customer and resolve the issue.

What happens if the customer is not able to pay right away?
If your customer cannot make payment immediately, BlueTape will work with both you and your customer to set up a short extension so they have time to resolve the issue.

In most cases, the customer will need to complete and sign a BlueTape credit application in order to qualify for extended terms.

What happens if the customer fails to make payment?
AR advance for your existing customer is a recourse program. This means that sellers are ultimately responsible for repaying BlueTape the amount advanced on those invoices, as well as any applicable fees including late fees if the customer fails to make payment.

How long after the account goes late do we need to buy the invoice back from BlueTape?

• Disputes (product, delivery, or service complaints): Sellers are required to repurchase the invoice immediately if the customer refuses to pay due to dispute.

• Financial hardship or insolvency: BlueTape will work with you and your customer to arrange a payment plan or extension. If the customer does not agree to terms or fails to make payments, you are required to repurchase the receivable after 30 days.

Best practice: if you believe a customer is insolvent, we recommend repurchasing the receivable as soon as possible to avoid additional late fees.

How does it work for large customers who use their own payment portal to pay?
If you have customers that pay exclusively through their own payment portal, BlueTape will set them up on our undisclosed program:

1. We establish a Deposit Account Control Agreement (DACA) account for you.
2. You connect the DACA account to your customer’s payment portal.
3. BlueTape is granted access to the portal for monitoring purposes.
4. All customer payments must be deposited directly into the DACA account.

From there, BlueTape collects repayment on any funded invoices. Any surplus or payments for invoices not funded by BlueTape are transferred back to your operating account the same day.

Can customers pay with a check?
We strongly recommend against accepting check payments. However, exceptions can be made in certain cases if there is a valid reason that the customer can only pay by check. 

Please note: Once customers are added and approved, they will receive a Notice of Assignment instructing them to make payments directly to BlueTape.

Can we collect payment from the customers and then send it to BlueTape?
No. This is strictly against our policy and agreement. All customers must make payments directly to BlueTape.

If a customer accidentally pays you instead of BlueTape, you will have 5 business days to send us payment in order to avoid a 10% Misdirected Payment Fee.