What the Contract Actually Allows
Wayflyer and Clearco Defaults

The forecast can fail without the contract failing with it. For an ecommerce brand funded through Wayflyer or Clearco, the first task is to separate a contractual response to weaker sales from a breach the provider asserts for a different reason.

Inventory ordered for a strong quarter can sit in cartons while collection continues through the bank account on file. Before the owner disputes a debit, the agreement and the funding plan deserve a reading that treats each provider on its own terms, since the two companies describe similar products in extremely different language.

How Wayflyer Prices Variable Repayment

Wayflyer offers two methods of repayment, a variable method based on a percentage of earned revenue and a fixed method set at the offer stage, though both options are not available on every offer. Under the variable method, Wayflyer collects a Daily Remittance Percentage calculated from total revenue across all connected platforms, as the Wayflyer repayment guide explains, so repayments adjust with revenue and a slow period brings lower transfers by design. The help page illustrates the point with a collection rate of 10 percent: revenue of $10,000 brings a debit of $1,000, while revenue of $5,000 brings a debit of $500.

The percentage sounds like protection until the owner asks what it protects, most often in an extremely quiet week. Cash flow pressure eases in the week sales fall, and the same mechanism stretches the timeline further into the future, a trade the page states in plain terms when it notes that slower sales extend repayment except where longstop dates apply. The dashboard shows the total repaid to date with the remaining balance beside it, and the email notices that follow each collection state the amount, the date, and the balance left behind, records that beat reconstruction from bank lines months later.

Fixed Repayment and the Stacked Second Advance

Under the fixed method, Wayflyer collects a set amount on a set schedule for a set period, regardless of sales movement. The page illustrates this with weekly collections of $1,000 that continue whether the week was strong or soft, a structure suited to predictable planning and hostile to surprise shortfalls. Early payoff carries no additional fee under either method, and a merchant on a variable plan who outperforms expectations repays faster.

A second advance taken while the first is still repaying can be structured in two ways (a choice that deserves more attention than the funding screen gives it). Under stacked repayment, each advance keeps its own rate, so advances at 10 percent and 15 percent of daily sales produce a combined daily outflow of 25 percent, and fixed advances are always stacked when further funding follows. Under blended repayment, the most recent advance sets the single rate that covers both advances, so the same two advances produce a combined outflow of 15 percent. Blended offers require the same billing cadence as the earlier offer, while stacked offers may carry different cadences.

Collection runs through debits from the designated business bank account, through ACH for merchants in the United States, under a mandate signed with the funding agreement. The page asks owners to keep sufficient funds in the account and warns that failed payments and canceled mandates may bring followup from the collections team, a team whose correspondence arrives in order to narrow the options rather than to widen them. Any discussion with that team, even briefly, deserves a written record kept with the agreement.

What Clearco Invoice Funding Covers

Clearco invoice funding pays supplier invoices while preserving cash for the rest of the business, a purpose narrower than a general advance and easier to misuse. The page describes funding that is non dilutive in character, stating access without blanket liens or personal guarantees, with funds landing either in the bank account or toward suppliers. And the distinction matters when the dispute arrives, because money advanced for cartons in the warehouse answers different questions than money spent on advertising.

Seldom does a weekly payment exceed its capped share, though the cap itself can rise across periods. Payments adjust when sales slow, and businesses may repay ahead of schedule with prorated fees and no penalties. The page gives estimated terms of 4 to 12 months. The cap notice arrives by email.

Where the Two Providers Diverge on a Slow Month

An order placed in October for holiday inventory can define an oblique winter for both of these products. Wayflyer variable plans absorb the slow month by extending the timeline, except where a longstop date sets a boundary the page leaves to the individual agreement. Clearco caps operate on a cumulative basis and increase over the life of an advance, with unused portions of a period cap carrying into the next period, so a slow week can raise the ceiling that a later strong week is allowed to reach.

Invoices paid through Clearco funding still require the capped weekly payments on schedule, even while the goods sit uncleared. Wayflyer monitors connected sales platforms, and where no ecommerce platform exists it turns to connected banking and accounting sources, to calculate the daily amount, and answers given without counsel can return as material used against the brand. The sample of agreements behind these pages is thin, though the mechanics repeat across enough offers to merit attention.

Counsel will want the funding agreement, the plan election, and the collection history before advising. Simply assemble those three items before the first conference.

Review Before the Shortfall Widens

Delancey Street offers a free confidential initial review of business debt concerns, and an ecommerce owner behind on Wayflyer or Clearco obligations can ask whether the account is eligible for settlement assistance. The company provides debt settlement services as a settlement company and coordinates legal matters with independent counsel, since it is not a law firm. Counsel should ensure that any proposal treats the correct product and the correct plan, and the objective is to ensure that no payment promise is made without confirmation of the rate, the cap, and the parties bound by the agreement (a flexibility the industry will praise in its marketing, which tells the owner nothing about the collection letter already drafted). Resist the urge to cancel the debit mandate without advice, since the agreement treats the mandate as authorization rather than courtesy.

Revenue based funding survives contact with a bad quarter better than fixed debt does, and worse than its advertising suggests. We review and analyze the agreement, protect and preserve the defenses it allows, and construct a position that addresses both the contractual claims and the practical reality of cartons that have not yet become cash.