As a freelancer, you have a debtor risk. This means that there might be a chance that an invoice is being paid late or not at all. It's your own responsibility to make sure your invoices are getting paid.
It is possible to buy off your debtor risk and also to ensure that you get paid faster through quick payment. YoungOnes then takes over your debtor risk, and you don't have to worry about it anymore! This is called 1 minute or 3 day payment (also called factoring). Because we run the risk of a client not paying or paying too late, a small fee is charged for this.
When submitting your hours, you can choose whether you want to wait for the client to pay or choose quick payment. If you have chosen these payment options, we will ensure that you receive the payment in your account within 1 minute or 3 days, after your hours have been approved by the client. Sometimes it may take longer than 1 min because, for example, an extra check is done. Because of the extra check, the payment may take up to 3 business days longer.
Costs & VAT reconciliation
It may not sound logical to charge a percentage of the total invoice amount, including VAT. However, quick payment is a service; in most cases, you pay VAT on that too. You can reclaim the VAT when you do your turnover tax unless you use the Small Businesses Scheme (kleindeondernemersregeling, KOR). Do you want to know how to do this? Take a look at our article about the turnover tax.
Direct payment & administration
The costs for these payment options (factoring) are business expenses. This will be marked on your invoice as 'Factoring <invoice number>'. You can deduct these payment costs (and the VAT only if you are not using the KOR scheme) as business expenses. You can use our administration tools for this purpose.
