Advance, factor, remittance.
Advance
The cash you receive. Watch for fees taken off the top so you know the net amount that lands in the account.
Factor (the multiplier)
Multiplies the advance to set total repayment. Example: 1.35 applied to $40,000 is $54,000 out. Market multipliers commonly run about 1.1x to 1.5x, with most sold deals landing around 1.30x to 1.40x, so 1.35 sits right at the market center. Industry figures, not an OpenQuote quote.
Remittance
How that total is collected over time, through daily or weekly ACH or a share of card sales typically 10% to 20%. These advances are commonly repaid over 3 to 18 months, most often 6 to 9. A shorter term raises the annualized cost of the same multiplier, because the same cost of capital is spread over less time. Industry figures, not an OpenQuote quote.
When sales slow down.
Remittances can feel heavy when sales slow, because the collection keeps running on its schedule while your revenue dips. That is why comparing total repayment in dollars, and understanding how the remittance is calculated, matters more than any sales pitch. If a structure does not fit your cash flow, say so early. A broker should help you compare options, not steer you toward a single product because it pays them more.
Our roleWhat OpenQuote does.
We are a funding broker. We help you prepare an application, understand partner paperwork, and compare options. Funding partners decide pricing and approval. Merchants pay OpenQuote no fee to apply or to receive matches, and we are compensated by partners when transactions complete.