Glossary

Total payback

The full amount remitted under an advance.

Total payback (also "purchased amount" or "repayment amount") is the entire sum you remit under an advance: the advance multiplied by the factor rate, plus any fees not deducted up front. It is fixed at signing and does not fall if you repay early unless the contract includes a discount schedule.

How it appears in a contract

Shown as "purchased amount" or "total repayment"; fees are often listed separately and deducted from the funded amount.

Worked example

Advance $20,000, factor 1.25: total payback $25,000. Fee of 2% deducted: net received $19,600. Total dollar cost: $5,400.

Illustrative figures on stated assumptions; not quotes.

What to ask

• What is the total payback in dollars, and what is the net I receive?
• Which fees are inside the payback and which are deducted up front?
• Is any part refundable if I repay early?

Related terms

Factor rate · Origination fee · Early payoff discount · all terms