To help you understand your fees, e've provided additional context for the fees themselves and terms for other figures used to calculate them.
Advance rate: This is the percentage of the invoice that FundThrough is giving you cash for now. We calculate this based on our knowledge of your business, your customer, and the history of short-payments (i.e., the typical amounts withheld for deductions, returns, etc.) within your industry. We will pay the remainder to you when we receive it from your customer (net of any fees due at the time).
Transaction fee: The transaction fee is charged up-front, as a percentage of the invoice value. It covers the costs of the work that goes into factoring an invoice. That includes conducting credit reviews, ensuring the flow of funds, and following up on accounts receivable. The fee is based on your verification method, and in some cases how long your customer takes to pay.
For Velocity transactions (i.e., in cases where we charge no funding fee), this is the total fee you’ll pay for this invoice, as long as your customer pays within a reasonable time (e.g., within 30d past the due date).
Funding fee: The funding fee helps us cover our cost of capital. It’s calculated using the following formula:
(our daily rate) X (number of days until invoice is paid) X (advance amount) = funding fee
Please note that this fee is an estimate; the earlier an invoice is paid, the lower the funding fee.
Note for BlueVine users: This fee used to be calculated as a percentage of your invoice face value. With FundThrough it’s calculated as a percentage of advance value.
To Be Paid: This is the dollar amount you’ll receive once your customer has paid the invoice. This is an estimate, and depends on how much your customer actually pays, plus any funding fees that may be due.