Line of Capital — Broker Calculator
What a draw costs, and what it costs to settle early.
The whole facility
What we pay for the receivables
6-month 1.30 · 12-month 1.60
Per cent, taken at funding
| Settle in month | Factor | Remittances | Remitted by then | Purchase price outstanding | Cost owed | Payoff | Total cost | Saved vs full term |
|---|
Assumes every remittance is made on schedule and none are returned. The final month is the full-term cost, so nothing is saved.
The factor does not move inside a month, so the cost is fixed across it. Every dollar remitted comes straight off the payoff — until cost paid overtakes cost earned.
| Remittances made | Remitted so far | Cost paid | Cost earned | Cost owed | Payoff now | Total cost |
|---|
- Every remittance splits in two.
- Part recovers the purchase price, part is the cost. At a 1.30 factor roughly 77c of every dollar recovers the purchase price and 23c is cost — from the very first remittance.
- Cost paid is what has happened.
- The cost halves of the remittances made so far, added up.
- Cost earned is what the agreement allows.
- The purchase price times the tier factor, less the purchase price. It would be the same figure even if the merchant had remitted nothing at all.
- The payoff is the gap.
- Purchase price still outstanding, plus any cost earned that has not yet been paid. That is the whole calculation.
- Remittances are level; earning is stepped.
- Cost comes in steadily from the first week, while the ladder climbs a step every 30 days. Early on the merchant pays cost faster than it is earned — and settling early hands that difference back.
- So it is not a discount we choose to give.
- It is cost the merchant has already paid that has not yet been earned.
- It never goes below zero.
- Overpaid cost reduces what is owed to nil. It is not refunded in cash.
Illustrative only. All funding is subject to credit approval and underwriting guidelines. This is not a commitment to fund. Point Break Funding · 866-930-4099 · submissions@pointbreakfunding.com