PLEASE NOTE: HoneyBook Advanced Funds is a closed beta for the moment. If you would like to participate or have feedback, please get in touch by clicking the Question Mark icon on any HoneyBook page or by emailing [email protected].
HoneyBook Advanced Funds lets you take an advance on a future client payment so you can invest in what your business needs to grow. There’s no need to worry about paying interest—just pay one flat, upfront fee to access your future payments early. The best part? Your client’s payment schedule stays the same!
In this article, we'll review:
- Eligibility for the Advanced Funds feature
- How to initiate Advanced Funds
- What happens after you initiate an advance
- A few more important feature details
HoneyBook Advanced Funds is currently a closed beta, so you may not have access even if you meet the eligibility requirements. If you are interested in utilizing Advanced Funds, please reach out to [email protected] so we can add you to the waitlist.
Eligibility is determined by multiple factors including, but not limited to, time with HoneyBook, payment history, and future outstanding payments. We will let you know if you are eligible for Advanced Funds access as we continue to roll out the program.
HOW TO INITIATE ADVANCED FUNDS
First, you’ll be notified when a file is eligible for an advance by a small pop-up in the product. You can also review the full list of eligible files in your Bookkeeping tab.
PLEASE NOTE: To be eligible, a Proposal or Invoice must have a paid deposit payment AND have a scheduled future payment or payments.
Then, when you've decided you'd like to proceed with the advance, just follow the steps below.
REMEMBER: an advance cannot be canceled once it has been initiated by clicking Get $[AMOUNT]. There are three steps in place before your deposit is initiated to ensure you’re ready to advance that payment.
To initiate an advance:
1. From your HoneyBook Dashboard, select the Tools menu > Bookkeeping.
2. Select the Advanced Funds tab.
3. Click View Details next to the future payment you’d like to advance.
4. Review the fee and check the box to accept terms. Then, click Get $[AMOUNT].
PLEASE NOTE: The associated fees are flat rates determined by multiple factors including, but not limited to, time until payment, advance amount, and payment history. Due to these factors, fees may vary between advances, even if the initial amount of the advance is the same.
The standard 3% processing fee is included in this rate—not added on in addition.
Congrats! The deposit will be initiated and will deposit in your bank account within 5-7 business days.
WHAT HAPPENS NEXT?
- You should see your advanced funds deposited in your account within a few days. Please note that though you can expect standard processing time, deposits may take up to 7 business days.
- Your HoneyBook reports will accurately reflect any advanced funds you’ve initiated in the month you received your advance.
- Keep track of advances and balances on the Advanced Funds dashboard.
- Your client will still pay the original amounts set in their payment schedule.
- When your client’s payment is received, it will automatically repay your advance—and that's it!
- Now, you can use your advanced funds to invest in what you need to grow!
THE IMPORTANT STUFF
- Maximum Advanced Funds amount is up to $5,000 cumulatively at a time. You can meet the max with one advanced payment, or with multiple smaller payments.
PLEASE NOTE: Advances take the balance of an entire file (vs. individual payments within the file) and cannot be split for a partial advance. If a file has a balance that would put you over the $5,000 advance amount, the file will not be eligible for an advance.
- Files must meet a few qualifications to be eligible. In order for a file to qualify for advance, the deposit payment must be paid and a future payment or payments must be set. File must have a balance that’s below the $5,000 advance limit.
- Flat fees: Because each rate is determined by multiple factors (as detailed above), you may receive a different flat fee for the same advance amount. Please review your advance amount and fee and advance payments that fit your needs.
- A standard 3% processing fee is included in the rate you see when you review your potential advanced fund. No other fees will be added.
- Payment will be deposited in your account in several business days.
PLEASE NOTE: though you can expect standard processing time, deposits may take up to 7 business days.
- Advanced Funds and your taxes: Advances will be reflected in your monthly and annual reports in your HoneyBook reports page—just download the CSV from there to see the data! Advances will be tracked in the month you advance your payment, rather than the month your client pays their final payment.
PLEASE NOTE: Be sure to download your monthly or annual reports to review more comprehensive information. If you have the Quickbooks integration turned on, advanced funds will be accurately forwarded to Quickbooks for your accounting purposes as well.
Want to learn more?
- Connecting your bank account to HoneyBook
- How long does it take to receive payments?
- Your clients' payment options through HoneyBook
- What does my client see when I send a Proposal or Invoice?
Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!