By using the product ‘Collection service’ you can get a 100% advance on the collection of your outstanding invoices. After the 10% premium for our ‘Turnaround System’ (a variation on the G-account), we will advance, on balance, 90% of the outstanding collections. Banks and other collection enterprises will usually advance only 60%-70% of the outstanding invoices. The amount you pay to our ‘Turnaround System’ can, after three months, be deducted from taxes.
Through this advance payment of your invoices you will, on average, wait 46 days less to get paid. In addition you will, almost immediately after sending the invoice, have the means available to place orders with the B of Joy cooperative. B of Joy members can buy or sell through the cooperative. The members can place supply and demand adverts in the B of Joy Marketplace, the business guide and the web-shop.
You can also apply for the transfer of the credit from B of Joy to your own external bank account. With the product ‘Collection service’, B of Joy takes over the collection management and the risk of non-payment. This collection management can be used for sales to businesses and individual members of B of Joy and also for sales to businesses that are not members of B of Joy. Business customers receive a basic account with which they can only receive products or services from the cooperative.
To make use of the Collection Service you have to be a business member of B of Joy. If you want to use the Collection Service for sales to business clients who aren’t members then you can. These businesses (non-members) do then have to become members of B of Joy, apply for a business account and make an application for a ‘Business User Limit’. This is to execute the advance and a requirement for the insurance against non-payment to apply. It’s important that the members and businesses making purchases from you can, in our system, give their agreement to the invoice you send.
This can be done with a mobile telephone or through the internet. When the invoice is sent, the buyer will receive an e-mail requesting their agreement to pay the invoice. The payment collection can only be insured when this agreement is given and only then can we make the advance on the invoice. Advance payments on invoices that cannot be collected because there is a conflict will be reclaimed for 100%. Advance payments on invoices that cannot be collected because the purchasing member or business is not capable of making the payment will be reclaimed for 20%.
For most companies - and for SME companies in particular - the use of collection services is way too expensive. Through our unique concept we have brought the costs down significantly to a transaction fee of 0.5% of the amount due, on the invoice (or other method of payment) to be paid. This transaction fee serves to cover the cost of insuring against non-payment by members or businesses. When you choose to transfer credit that you have built up by B of Joy to your external bank account a fee of 2% of the total amount will be charged.