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 direct payment. YoungOnes then takes over your debtor risk, and you don't have to worry about it anymore! This is called direct 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. For the direct payment option, you pay 2.9% of your total invoice amount.

When submitting your hours, you can choose whether you want to wait for the client to pay or choose direct payment. If you have chosen the direct payment option, we will ensure that you receive the payment in your account within 1 minute, 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 2.9% of the total invoice amount, including VAT. However, direct 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 a direct payment (factoring) are business expenses. This will be marked on your invoice as 'Factoring <invoice number>'. You can deduct these direct 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.