Risk handling

This page describes how Embedded Finance handles credit risk, repayment failures, margin calls, and overdue scenarios.

Risk Management Philosophy

Embedded Finance uses a data-driven risk model — credit assessment is based on transaction data and platform flow, not traditional collateral. Bettr's intelligent risk control and dynamic credit granting continuously monitor your credit position to maintain stable, investable credit conditions.

Credit Risk Indicators

Bettr monitors the following risk signals across all active credit products:

Repayment Failures

What Happens When You Miss a Payment

If a scheduled repayment is not made by the due date:
  1. Grace period: A short grace period may apply (contact your Bettr representative for specifics)
  1. Overdue notification: You will receive an overdue notification (via webhook or email)
  1. Interest accrual: Overdue interest accrues on the outstanding amount
  1. Credit line suspension: Your credit line may be suspended — no new drawdowns until the overdue amount is cleared
  1. Credit limit reduction: In repeated overdue cases, your credit limit may be permanently reduced

Repayment Priority

When partial repayment is made:
  1. Accrued interest and fees (paid first)
  1. Principal outstanding

Margin Call (Factoring)

For Pool Factoring, if the underlying receivable quality deteriorates or pool utilization exceeds acceptable risk thresholds, Bettr may issue a margin call:
  1. You will receive a
    factoringPool.UPDATED
    webhook with a flag indicating a margin call event
  1. You are required to either:
    • Add additional receivables to the pool to restore the coverage ratio, or
    • Repay a portion of the outstanding pool balance
  1. Failure to respond within the specified timeframe may result in pool suspension

Credit Line Adjustment (Dynamic Credit)

Bettr's dynamic credit granting continuously reassesses your credit limit based on:
  • Monthly settlement flow volume and consistency
  • Business growth trajectory
  • Platform binding changes
  • Repayment history

Upward adjustment

When your business grows and settlement flows increase, your credit limit may be increased. You will receive a
creditLines.ADJUSTED
webhook.

Downward adjustment

If your settlement flow declines, you unbind key platforms, or risk signals are triggered, your credit limit may be reduced. You will receive a
creditLines.ADJUSTED
webhook with the new lower limit.
Important: If your credit limit is reduced below your current outstanding balance, you must repay the difference. Plan drawdowns carefully and monitor
creditLines.ADJUSTED
events.

VCC Credit Risk

For VCC Credit Payment:
  • If the outstanding balance is not repaid by the 10th of each month (repayment date), the interest-free period ends and interest accrues on the outstanding amount
  • If two or more billing cycles are overdue, the card may be suspended
  • Repay via
    vccCredit.repay
    to restore card status

Handling Risk Events

Recommended Integration Pattern

Subscribe to these webhooks to detect and respond to risk events in real time:

Proactive Risk Mitigation

  1. Monitor repayment schedules via
    creditRepayments.querySchedule
    and
    vccCredit.queryStatement
  1. Set up automated repayment from WorldFirst balance to avoid missed payments
  1. Keep platforms bound — unbinding reduces your credit weight and may trigger a credit limit downward adjustment
  1. Maintain sufficient WorldFirst balance to support auto-repayment across all credit products

Contact

For risk-related queries, credit limit disputes, or margin call resolution, contact your Bettr regional representative directly.