When a business completes work but waits weeks for payment, the gap can complicate payroll, supplier payments and plans for the next contract. Revenue On Demand offers a flat-fee alternative to invoice factoring: eligible businesses can select approved invoices for early payment while retaining control of billing and customer relationships. Understanding the process, fee structure and risk allocation helps you decide whether it fits your cash-flow needs.
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How does Revenue On Demand work?
Revenue On Demand gives a B2B company access to cash tied up in approved invoices before the customer pays on the original terms. Rather than taking a conventional loan, the business submits invoices for review, chooses which ones to activate and receives the invoice amount minus a flat fee. Payment is typically made within 24–48 hours after approval, according to Now’s stated process.
The process is selective. A business can choose customers and invoices instead of committing every receivable to a program. That flexibility can matter when one large invoice creates a temporary gap but the rest of the company’s cash position is stable. See how the invoice activation process works for a fuller overview.
- Submit invoices. Upload eligible invoices or connect an accounting system so the invoices can be reviewed.
- Select invoices to activate. Choose which approved customer invoices to use. The business does not have to fund every invoice.
- Receive payment. After approval and activation, the business receives the invoice amount less the applicable flat fee, typically within 24–48 hours.
- The customer pays under the existing terms. The business remains the biller of record. The customer is informed about the arrangement, and the remittance address is updated; the commercial terms and day-to-day working relationship otherwise stay in place.
Before starting, gather the invoice and the records that support it. A finance team may want to verify that the work or goods were delivered, the amount matches the contract or purchase order, and the customer has the correct payment instructions. Check the invoice date, due date and any prior credits or partial payments as well. Clear documentation can make review more straightforward and helps the team spot a dispute or mismatch before relying on the expected cash.
It is also useful to decide who owns each part of the workflow. For example, sales or account management can confirm the customer relationship and notice, while accounts receivable updates remittance details and finance records the payment and fee. Assigning responsibility before an invoice is submitted avoids a last-minute scramble when the business needs funds for a particular obligation.
What makes the fee different from a factoring rate?
Traditional factoring arrangements often calculate a discount or factoring charge over time. If a customer pays later than expected, a time-based fee may continue to accrue, depending on the provider’s contract. A flat fee is set using the invoice’s payment terms, so the charge does not increase simply because the customer pays late. Always check the written agreement for the exact fee basis, eligible invoices and any other charges.
Now’s published pricing lists fees of 2.75% for 30-day terms, 5.25% for 60-day terms and 7.50% for 90-day terms, plus a one-time $250 activation fee. Invoices from non-U.S. customers have a 1% surcharge. These are stated pricing terms, not a quote for a particular company or invoice. Confirm the current terms directly before making a decision using Now’s published fee schedule.
| Point to compare | Revenue On Demand | Traditional factoring (terms vary) |
|---|---|---|
| How the cost is set | Flat fee tied to the invoice’s payment terms | Often a discount or factoring rate that may accrue with time |
| Late customer payment | The stated flat fee does not increase just because payment is late | Additional time-based charges may apply under the agreement |
| Invoice selection | Choose individual eligible invoices and customers | Some arrangements require a broader or ongoing receivables commitment |
| Who bills the customer | The business remains the biller of record; the remittance address changes | Depending on the arrangement, the factor may manage billing or collections |
| Funds available | Full invoice amount less the fee, with no reserve holdback in the described model | Some factors advance a portion and hold a reserve; confirm the contract |
This is a comparison of general features, not a promise that every factoring agreement works the same way. Ask each provider to show the total cost for the same invoice amount and payment timing. A useful comparison includes the fee, reserve, setup charge, minimum volume, termination terms and who handles customer communications.
Look beyond the headline rate when comparing offers. For one provider, a quoted discount may exclude a reserve that is returned after collection; for another, an activation or account fee may apply in addition to the invoice charge. Ask what happens if a customer pays early, pays late or sends a partial payment. Get the answer in writing, then compare the net cash received and the obligations that remain with your business. An apples-to-apples comparison should use the same invoice amount, terms and expected payment date.
How can you estimate the cost and cash-flow effect?
Start with an invoice you are considering activating and calculate the fee against the invoice amount. For illustration, a $100,000 invoice on 30-day terms at a 2.75% fee would have a $2,750 fee, before any applicable activation charge. The amount received after that fee would be $97,250. The example uses the published 30-day rate and excludes any other invoice-specific conditions.
Then compare the timing benefit with the cost. Ask what the earlier cash would allow the business to do: cover a payroll cycle, pay a supplier discount, avoid delaying a project or preserve a cash reserve. The answer is specific to your business. Earlier cash access can be useful, but it has a cost and should be weighed against available cash, payment terms and other financing options.
Model the actual cash gap rather than automatically activating the largest invoice. If a company needs $40,000 to cover a near-term obligation but has a $100,000 eligible invoice, it should ask whether activating a smaller invoice could meet the need at a lower total fee. Then map the expected customer payment date against payroll, supplier and tax dates. This simple timeline can reveal whether the issue is a one-time mismatch or a recurring working-capital pattern that needs a broader plan.
A practical forecast can use a short list of dates and amounts rather than a complex model. Put the expected invoice payment date beside the dates of planned outflows, then note the lowest projected cash balance. Next, test the same period with and without early payment, including the fee. If the earlier funds prevent a missed obligation or allow a time-sensitive purchase, compare that benefit with the cost. If the forecast remains healthy without activating the invoice, keeping the cash option may be preferable.
- Estimate the expected customer payment date, not only the stated due date.
- Calculate the flat fee in dollars for the specific invoice.
- Include any activation fee or surcharge that applies to your situation.
- Compare the cost with the operational consequences of waiting for payment.
- Check whether the invoice meets eligibility rules and whether the customer or invoice type is excluded.
For a broader view of receivables timing, review the practical guidance on what net-30 terms mean for a B2B business and ways to respond when a customer pays late. These steps can help you separate a recurring collection issue from a short-term timing gap.
What stays the same for your customers?
Revenue On Demand is transparent, not a non-notification arrangement. The customer is informed that the business is using the service. The business remains the biller of record, its payment terms stay the same and the remittance address is updated so payment reaches the right place. The business continues to own the customer relationship and should communicate clearly about the updated payment instructions.
That distinction is important for a finance team evaluating operational impact. Before activating an invoice, confirm what notice the customer will receive, who will answer questions and how your accounts receivable team will record the transaction. Aligning the sales, finance and billing teams can reduce confusion and help preserve a smooth payment process.
For instance, the account manager can tell the customer that the commercial agreement and due date remain unchanged, while pointing out the revised remittance information. The billing team can then confirm that the payment portal or vendor record has been updated, and the finance team can reconcile the incoming funds against the correct invoice. This clear division of tasks helps prevent a payment from going to an outdated account or being applied to the wrong receivable.
How does risk allocation work?
Revenue On Demand is described as non-recourse for the risk that a customer cannot pay because of insolvency or bankruptcy. That does not mean every dispute or problem is covered. The business remains responsible in cases involving fraud or bad faith, as specified in the agreement. Read the agreement carefully to understand what qualifies, what documentation is needed and how disputes are handled.
Also distinguish customer credit risk from invoice quality. Confirm that the work was completed, the invoice is accurate and the underlying customer obligation is clear. A short-paid invoice, a service dispute or a documentation issue can create complications regardless of how the business accesses funds. The service’s answers to common eligibility and process questions can help identify items to clarify before submitting invoices.
One way to prepare is to review the supporting records before selecting an invoice: the signed agreement or purchase order, proof of delivery or completed work, and any written acceptance or change order. Make sure the balance shown is still due and that no credit memo or offset is pending. These checks do not replace review of the contract, but they help the team distinguish a customer’s inability to pay from a disagreement about what is owed. If there is an active dispute, clarify how the agreement treats it before counting the invoice as a dependable source of cash.
When might a flat-fee alternative be worth considering?
This structure may merit review if your company invoices other businesses on net terms and has a specific need for earlier access to approved receivables. It can be relevant to agencies, consulting firms, staffing businesses, manufacturers and government contractors whose work is complete before cash arrives. For example, a consulting firm may need to bridge the gap between delivering a project milestone and receiving payment, while a staffing business may need to align payroll with customer payment cycles.
Different businesses have different cash-flow patterns. A firm that wants to assess its receivables routine can explore cash-flow management practices. Sector-specific context is available for consulting firms with invoice timing needs and government contractors managing payment delays. These resources can help frame the problem, but eligibility and costs depend on the company and invoice.
It may be a weaker fit if your business does not invoice B2B customers, if invoices are disputed or if the cost of early payment exceeds the benefit. It may also be unnecessary when cash reserves already cover the timing gap. Compare this option with the company’s existing credit facilities and working-capital plan rather than treating any one product as a default choice. The U.S. Small Business Administration provides a general starting point for exploring small-business financing resources; review the relevant program details and eligibility directly.
Consider the pattern behind the need, too. If one customer’s payment cycle creates an occasional mismatch, selective early payment may address a defined timing need. If multiple customers routinely pay later than expected, review credit checks, contract terms, invoicing accuracy, reminders and escalation procedures as part of a broader receivables plan. Financing can provide flexibility, but it does not resolve the cause of late payment or replace disciplined forecasting.
What should a CFO confirm before choosing?
Before using any receivables funding option, put the operating details and economics side by side. The following questions can help make the review concrete:
- Which invoices qualify? Confirm customer, invoice age, documentation and industry requirements.
- What is the all-in cost? Include the flat fee, activation fee and any surcharge, and ask whether other charges can apply.
- How quickly are funds available? Ask when the stated payment window begins and what can delay approval.
- What happens if a customer disputes an invoice? Clarify responsibility for disputes, short payments, fraud and bad faith in the written contract.
- What changes for billing operations? Confirm customer notice, remittance instructions, reconciliation and accounting treatment with the appropriate advisors.
- How selective is the arrangement? Check whether you can choose invoice by invoice and whether any minimum volume or ongoing commitment applies.
It can help to bring a representative invoice to the review. Use one with clear documentation and payment terms, then ask the provider to explain the net amount, timing, customer communication and treatment if the payment arrives late. A second example, such as a 60- or 90-day invoice, can show how the fee changes with terms. Finally, compare the results with an invoice that the company would not activate. This makes the choice concrete instead of relying on a general description of the product.
Record the decision criteria for the finance team. For example, a company might set a minimum cash balance, identify which obligations count as time-sensitive and require an invoice-level cost review before activation. The criteria should make room for judgment: a fee that is reasonable for a critical project may not be justified for a routine cash cushion. Revisit the assumptions when customer payment behavior, operating costs or available credit changes.
For accounting and legal treatment, consult qualified professionals familiar with your circumstances. Product descriptions are not a substitute for reviewing contract terms or obtaining professional advice.
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Frequently asked questions
Is Revenue On Demand a loan?
No. Now describes Revenue On Demand as a way to receive payment on approved invoices for a flat fee, rather than taking a loan with interest. Review the agreement and ask how the arrangement is treated for your company’s accounting and financing requirements.
Does the fee increase if the customer pays late?
The stated fee is flat based on the invoice’s payment terms and does not increase solely because the customer pays late. Verify the applicable fee and all other contract conditions before activating an invoice.
Does my customer know that I am using the service?
Yes. The arrangement is transparent. Your business remains the biller of record, the payment terms remain the same and the remittance address is updated.
Does non-recourse mean I have no responsibility for an invoice?
No. The model is described as non-recourse for customer-pay risk related to insolvency or bankruptcy, with exceptions for fraud or bad faith. Invoice accuracy, documentation and contractual obligations still matter.
Can I select only some invoices?
The model allows businesses to choose which eligible customers and invoices to activate. Ask about eligibility and any account-specific requirements before planning around a particular invoice.
Comparing the fee, timing, customer communication and risk terms against your actual receivables can show whether this flat-fee structure fits your business’s working-capital plan.