How Wectory works

Wectory gives you two ways to put the GoCardless Partner Integration to work. Rent Advance is rent factoring: you fund an advance to a landlord from your own reserves, and it is repaid out of the rent - through the tenant's Direct Debit where the tenancy runs on Rent Collection, otherwise from the rent the tenant pays you directly, or by the Direct Debit of a landlord that is a company or LLP where the landlord receives the rent. Rent Collection is white-label Direct Debit: your tenants pay rent straight into your collection account, branded as your agency.

Rent Advance is factoring: your agency buys the landlord's right to receive rent for a set number of months and pays for it now. It is a purchase, not a loan, so it sits outside FCA consumer credit regulation. With a private landlord your agency is repaid only from the rent the tenant pays, never by the landlord himself; with a company landlord either can pay, as consumer credit rules never apply to a company. You stay the GoCardless creditor and the merchant of record on both lines. Wectory provides the scoring, the collection orchestration, and the compliance, and never custodies funds.

You are the GoCardless creditor on every mandate. Wectory sits behind your brand as infrastructure and never holds the money.

On Rent Advance, the tenancy decides who repays the advance you funded. Where the tenancy runs on Rent Collection, the tenant's Rent Collection Direct Debit repays it, paying the rent straight into your collection account. Otherwise, where the tenant pays the rent to you, that rent repays it with no Direct Debit; where the landlord receives the rent, a landlord that is a company or LLP is the Direct Debit payer and repays it itself. A private landlord's advance is repaid only from the tenant's rent.

On every Rent Advance, the tenant pays the same rent as always.

On Rent Collection, the tenant is the Direct Debit payer and pays rent straight into your collection account. On either line, the tenant never pays a Wectory fee.

You connect your GoCardless account to Wectory once, through GoCardless OAuth. Wectory never sees your GoCardless password - the connection is a scoped access grant you can revoke at any time.

GoCardless then runs its own verification on your account. Collection becomes available as soon as GoCardless reports your account as verified.

To set up a mandate, Wectory opens a GoCardless Billing Request and sends your payer to the GoCardless-hosted authorisation page. On Rent Advance the payer is a landlord that is a company or LLP; where the tenancy runs on Rent Collection, its Direct Debit repays the advance and no new mandate is set up, and where the tenant pays you directly, no mandate is set up at all. On Rent Collection the payer is the tenant.

On that page the payer enters their bank details and authorises the Direct Debit, covered by the Direct Debit Guarantee. Once GoCardless confirms the mandate is active, collection can begin.

Each collection is a Bacs Direct Debit taken under your GoCardless creditor. GoCardless gives the payer advance notice of every charge, on the timetable the scheme requires.

Wectory's fee is taken at settlement through the GoCardless app_fee, in the same transaction, never as a separate charge to the payer. On Rent Advance the fee is 2.4% of each repayment collected. On Rent Collection the fee is £2 per successful Direct Debit.

Every mandate and payment shows its live GoCardless status in your dashboard. When GoCardless settles a payout, Wectory reconciles it automatically.

Your Payouts page breaks each payout into gross, the GoCardless fee, the Wectory fee, and any refunds, and flags any payout whose lines do not sum to the net amount that reaches your account.

You can refund a settled collection from its detail view. Wectory drives the refund to GoCardless and tracks it through to completion.

A refund sends the rent back to the payer and leaves the Wectory fee in place - GoCardless carries no Wectory fee back with a refund, so the fee on that collection stands. Where a collection fails after settlement or is charged back, GoCardless gives the Wectory fee back inside a later settlement, and we cancel the fee against what it gave back.

Wectory charges one fee per line and never bills the payer: it is taken at settlement, or invoiced to you monthly on Rent Advance rent paid to you directly. Rent Advance is 2.4% of each repayment collected or paid to you directly. Rent Collection is £2 per successful Direct Debit. The factoring fee you agree with each landlord on Rent Advance is yours to set and is separate from the Wectory fee.

If a landlord buys back early, your factoring fee stays with you and is not refunded, and Wectory takes no fee on the rent the buy-back covers.

Questions about the integration go to in@wectory.com.

Wectory's charges are yours alone, never the landlord's or the tenant's. They are 2.4% of each Rent Advance repayment collected or paid to you directly, £2 per successful Rent Collection Direct Debit, and the Extended Check you order. Each is published without VAT.

GoCardless charges you its own fee separately, with VAT at 20% on it whatever your own VAT status, on GoCardless's own VAT invoice.

The Factoring Fee is never a separate charge to the landlord, so any VAT on it sits inside it and nothing is added on top. Who pays decides that VAT. Where the tenant pays the rent to you, you take the collection of rent not yet due off the landlord's hands, and the fee is a standard-rated service: a sixth of it is VAT if you are registered, and a landlord registered for VAT is then owed your VAT invoice within 30 days. Where the landlord pays you by Direct Debit, which a landlord that is one company or one LLP may do, the fee pays for the capital you provide ahead of the rent, and it is exempt. Either way the whole fee is accounted for when the advance is paid, and a buy-back or a stopped deal does not change it.

The rent does not change: the tenant pays the same rent as always, and assigning it does not change the VAT treatment of the rent itself.

Your own Rent Collection, letting and management fees stay standard-rated, and a Wectory or GoCardless fee you pass on to a landlord becomes part of your fee, never a disbursement.

If you are registered, you account for the VAT inside each tenant-paid Factoring Fee in the period the advance is paid, and you recover any VAT on Wectory's and GoCardless's fees on Rent Collection and on tenant-paid repayments. On landlord-paid repayments that VAT serves an exempt fee, so it comes back only while your exempt input tax stays inside the partial exemption de minimis of £625 a month on average and half of all your input tax; past it, it is a cost.

If you use the Flat Rate Scheme, you pay your flat rate on every Factoring Fee, tenant-paid or landlord-paid, as on the rest of your turnover, and recover none of the VAT on Wectory's or GoCardless's fees.

If you are not registered, you add nothing to any fee, and any VAT on Wectory's and GoCardless's fees is a cost to you. Tenant-paid Factoring Fees and your collection and management fees count towards the £90,000 registration threshold; landlord-paid fees and the rent you pass on do not.

Cash accounting changes no timing: a Factoring Fee is received in full when it is set off against the advance, before Wectory's and GoCardless's deductions.

This is Wectory's reading of current law. Your VAT return stays your own, and your accountant's.