Credit Note (Applied to Balance)

The Credit Note Deposit is a strategic payment type designed to secure upfront revenue while simplifying your ongoing billing cycle. Unlike traditional bonds, this deposit is intended to be used as payment for the initial period of a subscription or rental.

How it Works

• Upfront Collection: Funds are charged immediately at your chosen trigger point (Booking Confirmation or Activation).

• Automatic Conversion: Loopit automatically converts the deposit into a standing Credit Note on the customer’s account.

• Smart Drawdown: The system prioritizes this credit balance for upcoming invoices. Loopit will automatically apply the credit to the first few billing cycles until the balance is exhausted, before reverting to the customer's stored payment method.

Automatically apply credit notes must be enabled in order for Credit Note deposit types to be automatically applied to a balance.

Key Benefits

• Boost Immediate Liquidity: Get cash in the door on day one to cover the first weeks or months of a booking, improving your business's cash flow.

• Reduce Payment Risk: Ensure a customer has met their initial financial obligations before they take delivery of the vehicle, minimizing the risk of "first-month" failed payments.

• Accountant-Friendly Automation: Because these are handled as Credit Notes, your tax invoices and revenue recognition stay perfectly synced without manual adjustments.

• Strategic Flexibility: You can layer this with other deposit types—for example, taking a Security Deposit Hold for asset protection and a Credit Note Deposit for upfront rent in the same transaction.

Ideal Use Case: Implementing a "First Month Upfront" policy where you want to secure the first 4 weeks of payment as soon as the customer signs up.