Similar to how your customers are assigned a buyer credit limit, you are assigned a Maximum Advance Limit (MAL). This represents the maximum amount of early payments you can receive on invoices at a point in time. This is set based on a variety of factors, including your revenue and margins, the cash balance in your connected bank account(s), your industry, credit bureau data, and more.
An example of how the MAL is used:
- Merchant has an MAL of $100k.
- Merchant issues a $50k invoice with a 90% advance ($45k advanced to the merchant); merchant has thus used 45% of their MAL.
- When the buyer pays, the MAL is “reset”.
How Resolve sets your maximum advance limit
During the application process, we review your company’s liquid assets, debt liabilities, spending patterns, annual revenue, and net terms requirements. By linking up as many data sources as possible, you help us evaluate you for the largest limits for your business.
Viewing your maximum advance limit
When does your maximum advance limit change and how often
Your limit may increase as your revenue and margins grow. However, it can also be lowered if your financial health weakens (e.g., declining revenue & margins, NSFs, high leverage ratios, etc). Currently, we reassess your limits monthly.
Requesting a limit change
If you’d like to request a limit change, please contact your CSM.