For UK letting agents and property managers with working capital
Rent Advance is a working-capital line you extend to your own landlords, funded from your own reserves, repaid from the rent you already collect. You agree the fee with the landlord. The tenant pays the same rent. Wectory never holds capital.
You hold business reserves at a low single-digit rate. Your landlords come to you each year with cash needs - January tax, EPC C work, refurbishments, refinance bridges - and you have nothing to offer them except a referral. Rent Advance turns the reserves you already hold into a working-capital line you extend to your own landlords, on terms you set, against rent you already collect.
UK business deposits clear roughly the Bank rate minus a margin. Sub-2% is not unusual. The same capital, deployed as a rent advance, prices off prevailing buy-to-let yields and the landlord's appetite for cash today, not in twelve months.
Tax in January. EPC C upgrades before the regulation lands. Refurbishments between tenancies. Refinance bridges when a remortgage slips. You hear these conversations every month and refer the landlord elsewhere. Rent Advance is the alternative.
You set the period and the factoring fee per deal; the tenancy decides who repays. You wire the net advance to the landlord from your own account. Wectory never holds the cash. The receivable sits on your book until rent amortises it.
Where a Direct Debit repays the advance, Wectory provisions its mandate with your collection account, white-labelled to your brand via GoCardless Partner Integration; where the tenant pays you directly, nothing changes for the tenant. Each month rent settles directly with you. On a Direct Debit, the platform fee deducts at settlement inside the same GoCardless scheme transaction.
The landlord signs with you, the tenant pays you, the rent settles into your account. Wectory operates as infrastructure behind your brand. When the advance amortises, you have a new pricing tool the landlord did not have to leave you to obtain.
Set your numbers. See what Rent Advance adds to your year.
Steady-state run rate, on top of your standard letting fees
Each repayment Direct Debit at this rent carries a Wectory fee of £33.04 and a GoCardless fee of £4, and both come out of the income shown. GoCardless's fee is shown at its public Standard tariff, before VAT, and is illustrative: your own plan may differ.
Figures are estimates before your own costs and taxes - not a quote, a forecast, or a statement of the income you will earn. Each supplier's fee is shown before VAT, and the income is after whatever of that VAT is not recovered. See about the calculators and worked examples.
Funded from your own reserves. The capital sitting at 1.61% on a business deposit today works as a rent advance at the rate you agree with each landlord.
You and your landlord agree the period of the advance and your factoring fee. The tenancy decides who repays: on Rent Collection, the tenant's rent repays the advance through that Direct Debit; otherwise the rent the tenant pays you directly repays it, or, where the landlord receives the rent, a landlord that is a company or LLP repays it itself. A private landlord's advance is repaid only from the tenant's rent.
You pay the net advance to the landlord from your own balance sheet. Wectory is not in this flow.
The receivable sits on your book until it amortises.
Where the landlord repays, Wectory provisions a Direct Debit mandate between the landlord and your collection account, white-labelled to your brand via GoCardless Partner Integration. If the tenancy already runs on Rent Collection, the existing tenant mandate is the instrument. Where the tenant pays you directly, no mandate is set up and nothing is asked of the tenant.
Each month the Direct Debit runs, or the tenant pays you the rent as now. Rent settles directly into your collection account. On a Direct Debit, the platform fee deducts at settlement inside the same GoCardless scheme transaction; on rent the tenant pays you directly, Wectory invoices it monthly on each instalment recorded as received.
If a Direct Debit fails, it shows as a case with GoCardless's retry verdict. The platform fee accrues only on rent collected or recorded as received.
Scheme events surface in your operational view as GoCardless reports them. Your settlements view reconciles each payout against its own lines and flags any that do not sum, instead of a monthly summary.
If a landlord buys back early, your factoring fee stays with you: it is your margin on the purchase, taken off the price you paid, never a separate charge, and it is not refunded. The platform fee accrues only on rent collected or recorded as received, so Wectory takes no platform fee on the rent a buy-back covers.
These describe the Factoring Agreement landlords sign today. A deal keeps the version its parties signed, and an earlier version can differ.
What your landlord confirms. That they own the rent, alone or with co-owners they sign for under the co-owners' written authority, and have not sold or charged it to anyone else, that the tenancy is in force, and that they will not, without your prior written consent, agree to cut the rent, change or end the tenancy, or let the tenant pay later, in a way that affects the rent you bought. They confirm it on every day of the advance period. Factoring Agreement, Section 5.
Who carries a missed rent payment. Where the tenant's rent pays the advance, you do, subject to the buy-backs below, and your landlord does not guarantee the tenant's payments. A landlord that is one company or one LLP and pays you itself pays each instalment whether or not its tenant has paid. Sections 4 and 6.
When your landlord must buy back. When something they confirmed is or becomes untrue, or they do something they agreed not to do and you cannot collect as a result. If the tenancy ends early, by the tenant's notice or otherwise, they buy back the rent you bought that would have fallen due after its last day, within 14 days, unless you agree otherwise in writing. They must also buy back:
The price is the value of the rent not yet collected. Sections 6 and 8.
When you may require a buy-back. If the tenant, or a landlord that pays you itself, misses a payment, you may require your landlord to buy back the rent not yet collected. You never have to. Section 6.
When your landlord may buy back early. At any time, on notice to you, for the value of the rent not yet collected. Your factoring fee is not refunded. Section 7.
If your landlord dies or becomes insolvent. The agreement continues, and on a death it binds your landlord's estate. You may tell the tenant about the assignment and collect the rent from them directly. If an insolvency, a receiver or a mortgagee leaves someone else taking the rent and you unable to collect it, your landlord must buy back. Section 8.
If the property is in Scotland. The tenant's rent pays the advance, and their written notice of the assignment is given to them as intimation, the step Scots law needs before the rent you bought passes to you. Section 9.
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.
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, and VAT at 20% is added to it once Wectory's VAT registration takes effect, on Wectory's own VAT invoice. Until then Wectory charges the published fee and adds nothing to it: the month's document is a statement of the deductions taken, and the monthly invoice for the fee on rent paid to you directly says it is not a VAT invoice. A registration later taking effect over a period already deducted or invoiced is settled inside the amount deducted or invoiced, with nothing further charged and nothing repaid, and an invoice not yet paid stays due in the amount it states.
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 Wectory's and GoCardless's VAT 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 Wectory's or GoCardless's VAT.
If you are not registered, you add nothing to any fee, and Wectory's and GoCardless's VAT are costs 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.
When you run Rent Advance and Rent Collection on the same tenancy, the tenant Direct Debit is the instrument under both lines. Each platform fee applies independently per its own mechanic.
With Collection running, you already see whether the tenant pays on time. When you later open Advance on the same tenancy, that history is the signal you act on - sharper than anything you can infer from the landlord.
Sister product
Rent Collection runs on the same Direct Debit rail. Add it now or later. Both fees apply independently per their own mechanic.
See Rent CollectionOpen now
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