Glossary · After funding
Paid-in percentage
Paid-in percentage is how much of an advance's payback a merchant has remitted so far. Funders use it to decide when a merchant can renew.
Also called percent paid in, % paid, paid down, pay-in
Divide what has been remitted by the total RTR. Funders publish a renewal threshold, often 50%, and the merchant becomes eligible to renew once the paid-in percentage reaches it.
Keep remittance current from funder reports so the percentage is real. A stale number means renewals get missed or offered too early.
Formula
% paid in = amount remitted ÷ RTR renewal eligible when % paid in ≥ the funder's threshold
Example
$40,500 remitted on a $67,500 payback is 60% paid in, past a 50% threshold.
Track it on every deal
Statements, offers, positions and commissions with the math worked out, in one CRM for lending companies.
Related
- FeatureRenewalsSee which funded merchants are eligible to renew now, in the next 30 days or later, from paid-in percentage and each lender's threshold, and start the renewal deal in one click.Read
- GlossaryRenewalA renewal is a new advance to a merchant who has paid down an existing one. It pays off the remaining balance, and eligibility usually starts at 40 to 60% paid in.Read
- GlossaryRTR (right to receive)RTR is the total amount of future receivables a funder buys in a merchant cash advance: the advance times the factor rate, also called the payback.Read
- GlossaryACH remittanceACH remittance is repaying an MCA through fixed daily or weekly debits from the merchant's bank account until the full RTR is delivered.Read
- GlossaryFunderA funder is the company that underwrites and pays out a cash advance or business loan. ISOs submit deals to funders and are paid commission when they fund.Read