If you are comparing ways to get paid sooner on B2B invoices, you may have seen the $250 Revenue On Demand activation fee. It is a one-time onboarding fee for account verification and setup. It is separate from the flat fee applied to each approved invoice.
Talk with a Now specialist about your invoice cash flow
That distinction matters when you are comparing total costs. The activation fee is the cost to start an account. The invoice fee is the percentage applied to an invoice based on its payment terms. This guide explains how the two charges fit together so you can evaluate Revenue On Demand with a clearer view of the process.
What is the Revenue On Demand activation fee?
The Revenue On Demand activation fee is a one-time $250 onboarding fee. According to Now’s published pricing, it covers account verification and setup.
In practical terms, the fee is associated with getting an account ready to use. It is not the same as the percentage fee that applies when Now purchases an approved invoice. If you are budgeting for a new account, treat the activation fee as an upfront starting cost and the invoice fee as a transaction cost.
The fee answers a different question from the invoice rate. The activation fee asks, “What does it cost to set up an account?” The invoice rate asks, “What does it cost to access cash for this approved invoice?” Keeping those questions separate makes it easier to compare offers and prepare a realistic cash-flow forecast.
What does the $250 activation fee cover?
The fee covers two parts of the starting process:
- Account verification: Now reviews the information needed to verify your business and its account.
- Account setup: Now prepares the account for the Revenue On Demand process.
Because each business and invoice situation is different, confirm the current onboarding requirements and collection timing with a Now specialist before starting. The published pricing page identifies the purpose of the fee but does not replace a review of your specific account.
Business leaders should also confirm whether any documents, account access or customer and invoice information are needed before the review can begin. Preparing those details in advance can make the setup conversation more useful and help you understand what happens after activation.
How is the activation fee different from the invoice fee?
The $250 fee and the invoice fee are separate parts of the cost structure:
| Cost | What it covers | When it applies | How to plan for it |
|---|---|---|---|
| Activation fee | Account verification and setup | Once when starting an account | Include $250 in your initial setup budget |
| Invoice fee | Access to cash for an approved invoice | Per approved invoice | Apply the percentage for that invoice’s payment terms |
| International surcharge | Additional cost when Now purchases an invoice from a customer outside the U.S. | When the surcharge applies | Ask how the 1% surcharge changes the invoice cost |
The invoice fee is not based on how long your customer ultimately takes to pay. Now’s published pricing lists rates from 2.50% for 15-day terms through 7.50% for 90-day terms. The published net-30 rate is 2.75%.
For example, a $100,000 invoice with net-30 terms would have a published invoice fee of $2,750 and provide $97,250 right away before considering any separate account-level charges. This example illustrates the invoice fee. It should not be read as a statement about when or how the one-time activation fee is collected.
How do the invoice terms affect the cost?
Now’s pricing schedule uses the payment terms on the invoice to set the flat percentage. The published schedule is:
- 15-day terms: 2.50%
- 30-day terms: 2.75%
- 45-day terms: 3.75%
- 60-day terms: 5.25%
- 75-day terms: 6.25%
- 90-day terms: 7.50%
Most clients use invoices with 30- to 45-day terms, according to the pricing page. If your customers use different terms, model each invoice separately. A longer term has a higher published percentage, but the invoice fee does not keep increasing simply because payment arrives later.
There is also a published 1% surcharge when Now purchases invoices from customers outside the U.S. Ask a specialist to confirm whether that surcharge applies to your situation and how it changes the total cost.
Is the activation fee the same as interest?
No. The activation fee is a one-time onboarding charge, not interest that accrues over time. Revenue On Demand’s invoice fee is also a fixed percentage based on the invoice terms rather than a monthly interest charge.
This structure is different from time-based financing where the cost can increase while an invoice remains unpaid. Now’s pricing page says the invoice fee does not compound simply because payment arrives later. Review the full agreement and your invoice terms to understand the total cost for your situation.
When you compare financing choices, look beyond the headline rate. The U.S. Small Business Administration’s finance guidance encourages business owners to manage finances and cash flow as part of running the business. A useful comparison includes the starting cost, transaction cost, timing of funds and any conditions that could change the final amount.
How should you include the fee in your cash-flow plan?
Build the activation fee into your initial cost estimate instead of treating it as part of the invoice percentage. A simple planning checklist can help:
- Identify the invoices you may want to activate and note each payment term.
- Estimate the applicable flat invoice fee for each term.
- Add the one-time $250 activation fee to your starting-cost view.
- Confirm how the activation fee is collected and when it is due.
- Ask whether an international surcharge applies to any relevant invoice.
- Compare the expected cash timing and total cost with other options.
For a process overview, see how Revenue On Demand works. It explains the path from invoice approval through payment and customer remittance. You can also review the B2B invoice financing guide for a broader comparison of funding structures, costs and customer impact.
How can you model the first use of an account?
Separate the starting cost from the cost of the first invoice. For a simple planning model, create one line for the $250 activation fee and another line for the invoice fee that matches the approved invoice’s terms. This keeps a one-time setup charge from being mistaken for a recurring percentage or added to every invoice in your forecast.
For example, assume your business is evaluating a $100,000 invoice with net-30 terms. The published 2.75% invoice fee would be $2,750, leaving $97,250 from that invoice before any separate account-level charge. The $250 activation fee belongs in the initial account-starting view. Do not assume from this example that it is deducted from invoice proceeds or collected at a specific time. Confirm those details with a specialist.
If you expect to use Revenue On Demand for more than one invoice, model each invoice using its own terms and keep the $250 activation fee as a one-time line item. Then compare the total cost with the value of receiving cash sooner, maintaining customer terms and choosing invoices selectively. This gives founders, CEOs and CFOs a more useful decision view than comparing only the percentage on one invoice.
A good forecast should also show what happens if you do not activate an invoice. The relevant comparison may include waiting for the customer’s scheduled payment, using another financing option or changing billing terms. Each path can affect cash timing, customer experience and working-capital flexibility differently.
What should you ask before activating an account?
A specialist can help you confirm the details that matter for your business. Consider asking:
- When is the one-time $250 activation fee due?
- How will it be collected?
- Which account verification and setup steps are required?
- Which of your invoice terms qualify and what flat percentage applies?
- How would international invoices affect the total cost?
- What happens if you activate only selected invoices rather than using the service for every invoice?
- How does the process work after an invoice is approved?
These questions help separate the cost of opening an account from the cost of using it for a particular invoice. They also give you a practical basis for comparing options rather than focusing on a single advertised rate. For another view of the model, read how Revenue On Demand compares with invoice factoring.
Is Revenue On Demand a fit for your business?
Revenue On Demand may be worth evaluating if your business invoices customers on net terms and needs a more predictable way to access earned revenue. The model is designed for selective use, so you can consider individual invoices instead of making an all-or-nothing commitment.
It may be especially relevant when you want to keep your existing customer payment terms and remain the biller of record. You should still compare the activation fee, invoice fee, cash timing and account requirements with the alternatives available to your business.
Review how Revenue On Demand works and the current Revenue On Demand pricing overview before you decide. If you want to discuss your invoices, use Now’s contact path to connect with a specialist.
Review the current Revenue On Demand pricing
Frequently asked questions
How much is the Revenue On Demand activation fee?
The published activation fee is $250. It is a one-time onboarding fee for account verification and setup.
Does the $250 fee replace the invoice fee?
No. The activation fee is separate from the flat percentage applied to an approved invoice. The invoice percentage varies by the invoice’s payment terms.
Does a late customer payment increase the invoice fee?
According to Now’s published pricing, the invoice fee is based on the invoice terms and does not compound simply because the customer pays later. Confirm the terms that apply to your account and invoice before proceeding.
Where can I see the current Revenue On Demand pricing?
See the Revenue On Demand pricing page for the current term-based fee schedule and the $250 activation fee. A Now specialist can help you evaluate how those fees apply to your invoices.