Float Charge and Credit Limits 🔋

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

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. Float Charge:

• 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
• 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.

How can my organization qualify and apply for Float Charge?

To qualify for Float Charge, your organization needs to meet the following criteria:

• Is currently a registered Canadian company (partnership or corporation)
• Have cash / GIC equivalent of $125,000 CAD on hand
• Estimated minimum monthly spend of $10,000 CAD
• 12+ months of operating cash or consistently profitable
• On our Professional or Enterprise plans
• Exclusions: Non-profits, cryptocurrency businesses

If your organization meets these criteria and wishes to apply, please reach out to your account representative. If you do not have one yet, don’t hesitate to contact us through the "Submit a request" link on help.floatfinancial.com. We’re here to assist you in confirming your eligibility and guiding you through the application process.

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 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. Here are some key notes when you apply 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. (However, US entities can open a USD Charge facility with a US-domiciled USD bank account)

How can I request a higher 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.

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:

• Make an early payment to free up your credit limit. This process typically takes up to 3 business days to clear.
  Related: Funding your Float Charge Facility
• Alternatively, on your funding page, you can activate the Auto-Paydown feature. This will facilitate automatic payments when you’re approaching your limit, ensuring you always have spending power.

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. Monthly Flinks Connection: Refresh your Flinks connection on a monthly basis.
2. Providing Financial/Bank Statements: Provide your Financial/Bank statements as requested, typically at intervals ranging every 1-12 months
3. Credit Utilization Rate: Maintain credit utilization rate of 50% or higher (If unable to reach this limit, we can adjust it lower and increase it again when needed)
4. 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.