Glossary · Pricing and math
RTR (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.
Also called right to receive, right to receipts, payback amount, purchased amount, RTR balance
RTR stands for right to receive (or right to receipts). In an MCA the funder does not lend money; it buys a slice of the merchant's future receivables. The RTR is the size of that slice, the dollar amount the merchant has agreed to deliver.
Funders and ISOs track the RTR balance after funding: the purchased amount minus everything remitted so far. That balance drives renewal eligibility, payoff letters for consolidations, and the paid-in percentage on a funded deal.
Because RTR is fixed at signing, paying early does not usually reduce it unless the contract includes an early payoff discount. Read the contract before quoting a payoff to a merchant.
Formula
RTR = advance × factor rate RTR balance = RTR − amount remitted % paid in = amount remitted ÷ RTR
Example
$50,000 × 1.35 = $67,500 RTR. After $40,500 has been remitted, the RTR balance is $27,000 and the deal is 60% paid in.
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
- FeatureOffer calculator and comparisonEnter advance, factor, buy rate, fees and frequency and get payback, net funding, payment, term, holdback and your commission. Compare every lender's offer side by side.Read
- Free toolMCA factor rate calculatorFree merchant cash advance calculator. Enter the advance, factor rate, fee and term to get payback, daily or weekly payment, cost of capital and an APR estimate.Read
- GlossaryFactor rateThe multiplier that sets what a merchant repays on a cash advance: advance amount times factor rate equals the total payback, usually 1.10 to 1.55.Read
- GlossaryPaid-in percentagePaid-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.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
- GlossaryAdvance amountThe advance amount is the gross purchase price a funder pays for a merchant's receivables, before fees and payoffs are taken out.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