In asset-based lending or factoring, the percentage of an asset’s value that a lender will advance (for example, 80% of eligible invoices).
For example, with an 85% advance rate on invoices, a $100,000 invoice could generate an $85,000 advance (minus fees and reserves).
Why it matters: It dictates exactly how much liquidity a business can unlock from its invoices, inventory, or equipment.
.avif)
.svg){kind=small}