Our algorithm calculates the return for each invoice you buy, taking into account the expected payment behaviour of the debtor.
If we already worked with the debtor before, we can calculate an approximate payment date based on previous transactions. In the case of a new debtor, we make use of an average number of days.
Example: When determining your return for investing in an invoice (called “Reduction”), we anticipate a payment date that is 10 days after due date of the invoice. In reality, the debtor pays 7 days after due date. This means that you have an advantage of 3 days which will favourably impact your return.
Please note that this can happen in both directions – sometimes to your advantage, sometimes to your disadvantage.
