Glossary · pricing

Purchased amount RTR

Also called RTR, right to receive, receipts purchased amount, specified amount, payback amount, total remittance amount.

The total dollars of future receipts the funder has bought and is entitled to collect - a fixed figure set at signing that does not shrink because you pay faster.

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

It is the purchase price multiplied by the factor rate, and it is the whole obligation. There is no accrual, no amortization schedule and no unearned portion to be credited back. What remains at any moment is simply the purchased amount less what has been collected.

Brokers and funders often call it RTR - right to receive - and the two terms are used interchangeably in submissions and payoff conversations.

On default, most agreements accelerate the entire remaining purchased amount immediately, and add default fees, collection costs and attorney fees on top. That is a materially larger exposure than the arrears, and it is what makes an event of default on an advance so much more consequential than a missed payment on a loan.

It is also the figure a renewal or consolidation must retire in full, since there is usually nothing to discount.

Where this one catches people

This number does not amortize, does not accrue and does not fall with early payment. Having made half the payments does not mean half the cost has been avoided - it means half of a fixed number has been paid. That single property is the largest structural difference between an advance and a loan, and it is why the effective annualised cost of an advance rises the faster you repay it.

Worked through

Illustration. Purchase price $80,000 at a factor rate of 1.35: purchased amount $108,000, cost $28,000.

After 60 banking days at $900 a day, $54,000 has been collected and $54,000 remains. A borrower thinking in loan terms might expect a discounted payoff, since only half the estimated term has run. There is nothing to discount - the payoff is $54,000, and the full $28,000 of cost was incurred at signing.

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 Revenue-Based Financing

Read next

Acceleration clauseThe clause that makes everything still owed due immediately on default, rather than on the original schedule. Factor rateA multiplier applied to the funded amount that fixes the total dollars to be remitted. It is a price, not a r… Payoff quoteAn indicative figure for what it would take to retire an existing position, given to a merchant or a competin… Percentage of receivablesThe share of the business's receipts a funder has bought and is entitled to collect - the operative obligatio… Prepayment penaltyA charge for repaying early - a flat fee, a stepped percentage, a lockout or a yield-maintenance calculation … PrincipalThe amount borrowed and still owed before interest and charges - a concept that exists in loans and does not … Purchase priceWhat the funder pays for the receipts it is buying - the gross contract figure before fees and payoffs, which… Reconciliation clauseThe contract provision setting out whether, when and how the fixed payment gets adjusted back to the agreed p…

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. $80,000 at 1.35 gives a $108,000 purchased amount and $28,000 of cost, and 60 banking days at $900 leaves exactly half outstanding example
    80,000 x 1.35 = 108,000; 108,000 - 80,000 = 28,000. 60 x 900 = 54,000 collected; 108,000 - 54,000 = 54,000 remaining. Full term at 900 a day = 108,000 / 900 = 120 banking days, so day 60 is exactly the midpoint, matching the entry's 'half the estimated term has run.'
    Find Me Funders — Arithmetic recomputed and checked in review Verified against source Checked 10 Sep 2026 by Find Me Funders research desk

Purchased amount — common questions

What does purchased amount mean?

The total dollars of future receipts the funder has bought and is entitled to collect - a fixed figure set at signing that does not shrink because you pay faster.

Where does purchased amount catch people out?

This number does not amortize, does not accrue and does not fall with early payment. Having made half the payments does not mean half the cost has been avoided - it means half of a fixed number has been paid. That single property is the largest structural difference between an advance and a loan, and it is why the effective annualised cost of an advance rises the faster you repay it.

Is purchased amount the same as an interest rate?

Purchased amount 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 purchased amount apply to?

Merchant Cash Advance, Revenue-Based Financing.

Is there a worked example of purchased amount?

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 purchased amount?

Acceleration clause, Factor rate, Payoff quote, Percentage of receivables, Prepayment penalty.

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.