# What is advance rate?

Source: https://launch-rec.com/glossary/advance-rate. Category: Funding. Market: US and UK.

## Definition

The percentage of an invoice a funder releases immediately. The remainder is held back as a reserve until the client pays.

## In practice

An 90% advance rate on a $100,000 ledger releases $90,000 now and $10,000 later, less fees. Your usable cash is the advance rate, not the ledger value — model it that way.

Advance rates flex with client credit quality, debtor concentration and your own dilution history (credit notes, disputes, timesheet corrections).

## Related terms

- https://launch-rec.com/glossary/invoice-factoring
- https://launch-rec.com/glossary/payroll-funding
- https://launch-rec.com/glossary/concentration-limit