Wayflyer funding agreements have flexible terms designed to align with your business cycles and cash flow. Unlike traditional loans with fixed monthly payments over rigid timeframes, our funding is structured to work with your business performance. This article explains the key terms, repayment timeline, and what happens at the end of your funding period.
Key funding terms explained:
When you accept a Wayflyer funding offer, your agreement includes several important terms:
Total funding amount
The capital you receive upfront from Wayflyer. For example: $100,000 advance
Fixed fee
A one-time fee calculated as a percentage of your funding amount. For example: 8% fee = $8,000
Total repayment amount
The total amount to be repaid to Wayflyer, usually the funding amount plus the fixed fee. For example: $100,000 + $8,000 = $108,000 total to be repaid
Remittance/repayment rate
The percentage of daily sales OR the fixed daily amount you'll pay back. For example: 12% of daily sales OR $1,200 per day
Repayment frequency
How often payments are collected. For example: daily, weekly, bi-weekly, or monthly
Estimated term
The projected time to fully repay based on your historical sales data, typically ranges from 12-24 weeks (3-6 months). If you are on variable repayments and your repayments take longer than this estimated term there will not be penalties, and no collection efforts will be made unless there is a concern with your ability to repay the total repayment amount.
Longstop date (Europe and Canada only):
For customers based in Europe or Canada, some funding agreements include a "longstop date" - a maximum date by which the full repayment amount must be collected.
Your agreement continues until either:
The full repayment amount has been collected, OR
The longstop date is reached
Whichever comes first.
Why does this exist?
Regulatory requirements in certain jurisdictions require a defined end date for financing agreements. The longstop date protects both you and Wayflyer by setting a clear maximum timeframe.
What happens if I reach the longstop date?
If your repayments haven't completed by the longstop date due to lower-than-expected sales, contact your account representative or Wayflyer support immediately. We'll work with you to determine the best path forward, which may include:
Restructuring the repayment terms
Extending the agreement (subject to approval)
Settling the remaining balance