Glossary
Holdback
The holdback is the percentage of your daily or weekly sales remitted toward a merchant cash advance until the purchased amount is delivered.
In plain terms
With a 12% holdback and $5,000 in sales on a given day, $600 goes toward the advance. On a $2,000 day, $240 does. Remittances rise and fall with your sales.
Why it matters when you're getting funded
The holdback sets how much cash leaves your account each day. Check it against your margins, not just your revenue, before you accept an offer.
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