If your account is set up to pay back the funding via Direct Debit then this will be done in two ways: variable or fixed.
For variable Direct Debits, we will be using Plaid Open Banking to see your relevant business transactions and generating a Direct Debit based on a percentage of these transactions. For example, if you made £1000 in Amazon sales and your repayment percentage was 10% we would generate a Direct Debit for £100.
If you are set up for a fixed Direct Debit then you will be charged a fixed amount, based upon what is presented in the contract. If the Direct Debit is scheduled to be weekly it will be charged during a weekday, and if the Direct Debit is daily you will be charged from Monday to Friday. Once a schedule has been determined (it will show on the contract) we may not be able to change this.
How repayments will work is that a payment is first generated with an amount by our Direct Debit provider called GoCardless. You can see this in the Transactions section of your Dashboard. A few working days after that they are 'Charged' - this is the point at which the money is debited from your business bank account.
The charged Direct Debit will remain in the 'Uncleared' status on your Dashboard until fully processed (again, usually a few working days), at this point it will show as 'Cleared' and reflect on your repayments balance in the Advances section of the Dashboard.
Further Direct Debit queries
Further Direct Debit queries
What happens if a payment fails?
If a Direct Debit payment fails it will be reattempted the same day next week (if possible) automatically. We would be unable to change this, so we would not look to obtain the failed payment outside of the reattempt.
Please note we are not given any reason why an individual Direct Debit would fail, so we are unable to provide one.
Why have I been charged twice today?
This may be due to a bank holiday, if you pay daily (Monday to Friday) then you will be charged twice that week on one day to make up the shortfall. Also, as failed payments get reattempted automatically the week after the original attempt - this may also be causing the issue.