As part of our dedication to transparency and quality customer service, here are some of the most common merchant cash advance terms explained:
Business or Merchant Cash Advance Provider: A business e.g. Infinity Capital Funding that essentially purchases the future credit card sales of another business in exchange for an upfront cash payment.
Advance Amount: The amount of cash given to a business upfront in exchange for a percentage of the business’ future credit card sales. At Infinity Capital Funding, advances up to 125% of monthly credit card sales are available.
Factor Rate (also called Provider Fee): The factor rate is the percentage of the business cash advance amount that the merchant cash advance provider charges in exchange for the cash advance.
Daily Retrieval Rate: This is the amount a merchant cash advance provider collects from daily credit card sales. This is usually expressed as a percentage and allows the business receiving the cash advance to determine how soon it will be able to pay off the cash advance.
Safe Retrieval Rate: This refers to the daily retrieval rate as a percentage, which is the portion of daily sales that can be used for daily repayment (are “safe”) while leaving the business with sufficient cash flow to sustain itself.