Glossary · operations

Amount funded

Also called purchase price, net funded amount, advance amount.

The money actually delivered to the business, which is not always the number on the front page of the agreement.

Drafted with AI assistance and checked by a person. Its factual claims were verified against the sources listed at the end, by Find Me Funders research desk.

What it means

Funding agreements carry two figures that are easy to confuse. The gross amount, described as the purchase price or loan amount, and the net wired to your account after fees are deducted. Origination, underwriting, documentation, UCC filing and in some cases broker compensation are commonly netted out of the gross at closing rather than billed separately.

The distinction is not cosmetic. Cost is measured against the money you received, not the money named in the contract, while the payback is calculated on the gross. Every fee netted at closing raises the effective cost of the transaction twice over: you get less and you repay on more.

In a consolidation or refinance, a further slice never reaches you. The payoff to the existing funder is wired directly, so the gross figure may include a large amount you never see. The net-net, sometimes called net cash to merchant, is the only number that funds payroll.

Under the state commercial financing disclosure statutes now in force in several states, providers have to disclose the amount financed and the disbursement separately for covered transactions, precisely because the gap between them was being used as a selling point.

Where this one catches people

Brokers quote the gross. A merchant told they are approved for 100,000 may receive 88,000 after fees and still owe payback calculated on 100,000. Ask for the net wire figure in writing before signing; the Federal Trade Commission has brought cases against funders over exactly this gap between the advertised amount and the money delivered.

Worked through

Purchase price 100,000, purchased amount 140,000. Origination fee 4 percent (4,000), underwriting fee 1,000, ACH and filing fees 400. Net wire is 94,600. The real cost is 140,000 repaid on 94,600 received, a multiple of 1.48 on cash in hand rather than the 1.40 on the contract.

Figures in the example are illustrative. They show the arithmetic, not a quote — what any one lender would charge is on that lender's page, where it is published at all.

Where you will meet this term

Merchant Cash Advance Working Capital Term Loan Equipment Financing

Read next

Closing costsEverything deducted or payable at funding beyond the financing cost itself, from origination and documentatio… Commercial financing disclosure law (CFDL)State statutes requiring standardized cost disclosures on small commercial financing, including cash advances… ConsolidationReplacing several outstanding advances or loans with one facility, which genuinely helps only if the old bala… Factor rateA multiplier applied to the funded amount that fixes the total dollars to be remitted. It is a price, not a r… Origination feeA charge for putting the transaction on the books, usually deducted from the disbursement rather than billed,… Purchased amount (RTR)The total dollars of future receipts the funder has bought and is entitled to collect - a fixed figure set at…

Sources and checks

Every figure on this page traces to a document someone read, on a date. Where a check is past its review date it says so rather than passing as current.

  1. on a 100,000 purchase price with 140,000 purchased amount and 5,400 of netted fees, the net wire is 94,600 and the multiple on cash in hand is 1.48 example
    Fees: 4% x 100,000 = 4,000 origination, plus 1,000 underwriting, plus 400 ACH and filing = 5,400. 100,000 - 5,400 = 94,600 net wire. 140,000 / 94,600 = 1.4799, i.e. 1.48 against the 1.40 stated on the contract.
    Find Me Funders — Arithmetic recomputed and checked in review Verified against source Checked 10 Sep 2026 by Find Me Funders research desk
  2. the FTC has brought cases over the gap between the advertised amount and the money actually delivered trap
    FTC press release, 'FTC Alleges Merchant Cash Advance Provider Overcharged Small Businesses Millions' (August 2020, Yellowstone Capital): the complaint alleges 'the amount shown on the contract not reflecting additional fees that would be deducted... these fees totaled hundreds and even thousands of dollars, and were not revealed to business owners until, in some cases, after their contracts were signed.'
    Federal Trade Commission — FTC Alleges Merchant Cash Advance Provider Overcharged Small Business… Verified against source Checked 10 Sep 2026 by Find Me Funders research desk
  3. state commercial financing disclosure statutes do require the amount financed and the disbursement to be shown separately for covered transactions definition
    California's disclosure regulations require a 'Funding You Will Receive' line defined as 'the amount of funds that will be provided to the recipient, excluding any deductions such as origination charges and amounts used to pay off other financings' (s 2061(a)(2)(B) and parallel provisions), shown alongside the amount financed.
    California Department of Financial Protection and Innovation — California commercial financing disclosure requirements (Fin. Code § … Verified against source Checked 10 Sep 2026 by Find Me Funders research desk

Amount funded — common questions

What does amount funded mean?

The money actually delivered to the business, which is not always the number on the front page of the agreement.

Where does amount funded catch people out?

Brokers quote the gross. A merchant told they are approved for 100,000 may receive 88,000 after fees and still owe payback calculated on 100,000. Ask for the net wire figure in writing before signing; the Federal Trade Commission has brought cases against funders over exactly this gap between the advertised amount and the money delivered.

Is amount funded the same as an interest rate?

Amount funded is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.

Which products does amount funded apply to?

Merchant Cash Advance, Working Capital, Term Loan, Equipment Financing.

Is there a worked example of amount funded?

Yes, on this page, and it is labelled illustrative. It shows the arithmetic, not a quote from any lender.

What else should I read alongside amount funded?

Closing costs, Commercial financing disclosure law, Consolidation, Factor rate, Origination fee.

Has this definition been checked?

Yes. Its claims were verified against the sources listed at the end of this page, and the reviewer is named.

Is this legal advice?

No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.

Can I suggest a term?

Yes — [email protected]. The glossary grows from what people are actually shown in contracts.