What is Advance Rate?
The percentage of the invoice that will be advanced to the client. This rate often varies between 70% and 95% of the gross invoice value.
RELATED TERMS
- Gross Margin & Gross Profit
Gross Margin is the difference between revenue and cost of goods sold, or COGS, divided by revenue, expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold (production or…
- Cash Advance
An amount of money advanced to the client before the load has been delivered.
- Factoring Advance
A cash advance to a Client (usually by wire transfer or ACH) for 80-90% of the value of the purchased and verified Invoice. Our goal at ECapital is to verify and fund the same day as invoice receipt (if before…