What receivables advances are
Photo: Avila Ops Tecnologia
Receivables advances ask payment processors or banks to pay card sales today at a discount instead of weeks or months later. You exchange time for money. The deducted fee is proportional to time until settlement.
Black Friday money leaves before arriving. October stock becomes November sales in six card installments, with the last received in May. Advances solve cash flow but eat margin.
How does the fee work?
Single-payment credit usually settles around 30 days. Installments arrive in their months: the sixth six months later. Advances charge a monthly percentage on advanced amounts. At 2% monthly, advancing a three-month-away installment costs about 6%.
Add normal card fees. A R$ 300 six-installment sale with a 4% fee and full advance at 2% monthly loses R$ 12 in fees and roughly R$ 21 in advances, leaving R$ 267. A 20%, R$ 60 margin loses one-third of profit to advances.
Some processors’ “automatic advance” rates look smaller but include advances on every sale. Request simulations in reais.
When are advances worthwhile?
When early money earns more than it costs. Advancing at 6% to buy stock at a 15% cash discount works. Monthly routine points to pricing or cash flow rather than card deadlines.
A children’s clothing store targeting R$ 20,000 Black Friday sales, half in installments, need not advance all: offer 5% off instant Pix. It costs less and pays immediately. See Profit margins and Black Friday pricing.
What to do now
Total processor fees and advance charges over three months. If surprising, begin with Pix as primary. Avila Ops E-Commerce offers instant Pix, cards and boleto without sales commission: avilaops.com/loja-virtual or contact us on WhatsApp: wa.me/5517997811471.
Frequently asked questions
Are advances loans?
They work similarly: less today than later. Credit checks are minimal or absent because completed sales secure them. Easy to obtain and overuse.
What do card receivables advances cost?
It depends on processor and term, charged monthly on advanced amounts. Request a reais simulation for a typical sale before accepting.
Does Pix need advances?
No. It arrives instantly without settlement delays, the cheapest receipt method in every Avila Ops plan.
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