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Pricing & costs
Know the full cost before you sign.
The cost of an advance is simple to state: the purchased amount you sell minus the purchase price you receive, plus any fees in your agreement. Here's how it works, with a calculator to see the math.
How cost works
Three numbers tell the story.
| Purchase price | What you receive up front, less any disclosed fees. |
|---|---|
| Factor | The multiplier applied to the purchase price. A factor of 1.30 on $100,000 means $130,000 of receivables purchased. |
| Purchased amount | Purchase price × factor. This is the total remitted over the life of the advance. It is fixed and does not grow. |
Calculator
See the math.
Move the sliders to see how purchase price, factor and term affect the purchased amount and the remittance. This is an illustration only, not an offer.
Illustration only. Fees, actual factor, term and remittance are set in your written offer and agreement, along with any disclosure your state requires.
Worked example
A $100,000 advance, start to finish.
Illustration only. A business receives a $100,000 purchase price at a 1.30 factor, so it sells $130,000 of future receivables. With an estimated six-month term and daily remittances on about 126 business days, each remittance is roughly $1,032.
- The total cost is $30,000, the difference between $130,000 and $100,000, plus any fees listed in the agreement.
- If sales rise and the business remits faster, the total stays $130,000.
- If sales fall, the business can request a reconciliation to bring the remittance in line with actual receivables.
Disclosures
Everything in writing.
Before you sign, you receive in writing:
- The purchase price, the purchased amount and the specified percentage
- The remittance amount, frequency and estimated term
- Every fee and when it applies
- In states with commercial financing disclosure laws, such as New York and California, the disclosure those laws require, which may include an estimated annualized cost
Ask us anything about your offer before signing. We would rather explain it twice than have you surprised once.
What affects pricing
Why offers differ.
Pricing reflects how predictable your future receivables are. These are the biggest factors:
Revenue consistency
Steady monthly deposits usually earn better terms than volatile ones.
Existing obligations
Other advances or loans reduce the cash flow available for remittances.
Term
Shorter terms generally carry a lower factor than longer ones.
History with us
Renewal clients with a good record often see improved pricing.