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Float Charge and Credit Limits

  • Updated

Float Charge is one of the many innovative financial products that Float offers to make finance and spending for Canadian businesses easier!

 

Guide Overview

What is Float Charge?

How can my organization qualify and apply for Float Charge?

What is the application and underwriting process?

What currencies are supported?

How can I request a higher credit limit?

I used up my credit limit. How can I increase my Spending Power?

How do I maintain my Float Charge facility and credit limit?

 

What is Float Charge?

Float Charge is an innovative financial product combining the most desired features of a credit card and spend management software on the market.

  • Provides a Credit limit*: allowing you the flexibility to spend and settle your balance afterward on 15-day or 30-day payment cycles.
  • Auto-repayments: Money spent is automatically repaid at the end of your cycle from your bank accounts. This way, all you have to do is spend and ensure the funds for repayment are in your bank account
  • It is interest-free: you read that right, the Charge product is interest-free!

* How is my credit limit determined?

Your credit limit is determined based on a comprehensive evaluation of various factors, including your industry, revenue/company performance, current debt levels, cash balance, liquidity, credit utilization rate, and past credit history.

Charge customers have account statements separated, one for their Cash accounts and the other for their Charge accounts. For more details, see: Statements Overview

 

How can my organization qualify and apply for Float Charge?

How to qualify for Float Charge:

  • Is currently a registered Canadian company (partnership or corporation)
  • Have cash / GIC equivalent of $75,000 CAD on hand consistently
  • Estimated minimum monthly spend of $5,000 CAD
  • 12+ months of operating cash or consistently profitable and cash flow positive
  • Exclusions: Non-profits, cryptocurrency businesses

Not sure if you'll qualify or if Float Charge is right for you? Click here to try our interactive Funding Calculator!

How to apply for Float Charge:

  1. Log in to app.floatfinancial.com 
  2. Navigate to Accounts > Scroll to the Charge Application section
  3. Click Apply Now > Start Application
  4. Follow the prompts to submit your application

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What is the application and underwriting process?

The application process is made up of just 2 parts:

  1. An internal underwriting process, and
  2. A quick due diligence call with you

The underwriting process involves the submission of a few essential documents, namely your financial statements and your most recent banking statements. 

Why are these documents necessary?

  • These documents are necessary to validate your eligibility and determine your credit limit
  • They are also standard for credit underwriting and required by the lending partners we work with

 

If you encounter difficulties in providing these documents, you can reach out to your account representative for assistance (or support@floatfinancial.com if you do not have an account representative)

 

What currencies are supported?

We currently support CAD and USD for Float Charge.

Key notes when applying for both currencies:

  • No FX Fees: When you spend money, it gets repaid in the same currency, ensuring you don’t incur FX fees
  • CA Domiciled Bank Accounts: A Canada-domiciled USD bank account is required to open a USD Charge facility for Canadian entities
  • US Entities: US entities can open a USD Charge facility with a US-domiciled USD bank account

 

How can I request a higher credit limit?

If you find yourself hitting 80% or higher credit utilization rate in the last 60 days, you may request a higher limit by getting your primary admin to submit a request to charge@floatfinancial.com.

If applicable, please include your customer service representative or account representative in your request.

 

I used up my credit limit. How can I increase my Spending Power?

If you’ve used up your credit limit, here’s what you can do:

  1. Make an early payment:

    • This process typically takes up to 3 business days to clear
    • To make an early payment:
      • Navigate to Accounts > Overview
      • Click your Charge account
      • Select "Pay Balance" in blue
      • Input the Amount, the account you'd like the transfer to come from (your Float Cash account of the same currency or connected bank), and optionally, add a Comment
      • Select "Continue" > Review the summary of your payment
      • Select "Submit"

  2. Enable the Auto-Paydown feature:

    • This will automatically initiate a payment once your credit limit reaches a specific threshold, ensuring you always have spending power
    • To enable Auto-Paydowns:
      1. Navigate to Accounts > Overview 
      2. Click your Charge account
      3. Next to Auto-paydown, click "Enable" 
      4. Set the "Automatically transfer" and "When my available balance falls below" amounts
        1. We recommend setting each of these values to match at least three business days' worth of typical spending.
      5. Select the account you'd like the transfer to come from (your Float Cash account of the same currency or connected bank)
      6. Check "Enabled"
      7. Click Save 

  3. Overfund your Charge account:

    • From a Connected Bank Account:
      1. Navigate to Accounts
      2. Click "Add Funds" > "Bank Transfer"
      3. In the Add Funds window:
        • Input the amount you'd like to top up
        • Select the connected bank account that you'd like to fund from
        • Select your CAD/USD Charge account to transfer the funds to
        • Add a comment (required)
      4. Click "Continue" > Review the transfer summary
      5. Click "Continue"
    • From your Cash Account Balance:
      1. Navigate to Accounts > Select "Transfer"
      2. In the Transfer Funds window:
        1. Input the amount you'd like to transfer
        2. Select the Cash Account you'd like to transfer from
        3. Select the Charge account you'd like to transfer to
        4. Add a comment (required)
      3. Click "Continue" > Review the transfer summary
      4. Click "Continue"

 

How do I maintain my Float Charge facility and credit limit?

Here’s what you need to keep your Float Charge facility and credit limit in good standing:

  1. Providing Financial/Bank Statements: Provide your Financial/Bank statements as requested, typically at intervals ranging every 1-12 months. 
  2. Credit Utilization Rate: Maintain a credit utilization rate of 70% or higher (If unable to reach this limit, we can adjust it lower and increase it again when needed)
  3. Hold 9+ Months of Operating Cash

These requirements are necessary because Float does not have direct access to your financial information. Float is at the discretion of pausing credit and pausing spend in the event of a Terms of Service violation, or failure to comply with the above requirements and ongoing risk assessments.

 

If you have any further questions or wish to learn more about Float Charge, please reach out to an account representative or support@floatfinancial.com for more information.

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