Terminology

Factor Rate: a factor rate is a fixed rate, it never changes unlike an interest rate. If we Advance a merchant  $10,000 for $14,000, the merchant owes $14000, no matter how long/short the repayment takes.

Purchase price: the amount we fund the merchant for.

Purchased amount: the amount the merchant owes.

Specified percentage: the amount we retrieve daily form the merchant.

Receivables: the amount of money a merchants business takes in.

Escrow/Trust Account: The account the merchants deposits goes into so we can take our retrieval percentage

EFT: electronic funds transfer; the manner in which we transfer the daily deposit minus the daily specified percentage to the merchants business account from the escrow account.