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Advance Speed Value Calculator

Quantify the economic value of faster funding to help merchants weigh speed versus cost.

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What Is the Value of Faster Funding?

Funding speed has real economic value. A merchant who needs capital to purchase time-sensitive inventory, cover payroll during a cash gap, or seize a business opportunity loses money for every day they wait. If waiting an extra 4 days costs $2,000/day in lost revenue or penalties, the cost of delay is $8,000. That means paying up to $8,000 more for same-day funding versus a 5-day funder is economically rational. This calculator quantifies the delay cost so brokers can help merchants make informed decisions about speed versus factor rate tradeoffs. Many merchants instinctively want the cheapest option -- showing them the cost of delay often shifts the decision toward faster (but slightly more expensive) funders.

How to Use This Calculator

Enter the funding amount

The amount being funded by each funder. Assume both funders offer the same amount for a clean comparison.

Set funding timelines for each funder

Funder A is the faster option, Funder B is slower. The difference in days is the delay window to analyze.

Estimate the merchant's daily revenue loss

What does the merchant lose each day they do not have the capital? This could be lost inventory sales, late payment penalties, missed contract opportunities, or payroll shortfalls.

Key Concepts

Cost of Delay

The economic cost to the merchant of each additional day without capital. Calculated as daily revenue impact multiplied by the number of delay days.

Speed Premium

The additional cost (higher factor rate) associated with faster funding. Justified when the cost of delay exceeds the speed premium.

Same-Day Funding

Capital delivered within one business day of approval. Typically commands a 5-10 basis point factor rate premium over standard 3-5 day funding.

Expert Insights

Speed Sells -- But Use It Honestly: Urgency is a powerful closing tool. But manufacturing urgency when none exists is a disservice to the merchant. If the merchant needs capital today (payroll is tomorrow, inventory arrives Monday), speed has real value. If they can wait a week, save them money with the slower, cheaper funder. Building a reputation for honest speed advice generates more referrals than closing one deal faster.

Same-Day Funders Have Limitations: Same-day funding typically requires submissions before noon ET, clean bank statements with no red flags, and deals within the funder's automated approval parameters. Complex deals, high amounts, or unusual industries may not qualify for same-day regardless of the funder's marketing. Set merchant expectations: "We will aim for same-day, but if underwriting needs additional documentation, it may be next day."

Frequently Asked Questions

The premium varies by funder. Some charge 5-10 basis points higher factor rate for same-day. Others charge a flat expedite fee ($250-$1,000). Some funders offer same-day at no premium as a competitive differentiator. Compare total cost, not just the stated premium.

No. Same-day funding requires clean documentation, standard deal parameters, and submission before the funder's cutoff time (usually 11 AM-1 PM ET). Large deals ($250K+), complex structures, or deals requiring additional verification typically take 2-5 days regardless of funder capabilities.

Generally no. Commission is based on the funded amount and rate, not the speed. However, same-day funders may have different commission structures (some pay lower commission to offset their faster processing costs). Verify commission is the same for expedited vs. standard before promising speed.

Results are estimates for educational purposes only. Actual amounts may vary based on your specific financial situation, market conditions, and other factors. This calculator does not constitute financial advice.