The purchased amount is the dollar total the funder collects from your sales before the deal is complete. It is the payback figure on an advance, and some contracts call it the receivables purchased amount.
It is fixed at signing. In a true merchant cash advance, it is collected as your sales come in, so a slow month should mean slower collection rather than a default. The funder carries the risk that your sales fall short, and that risk is part of what makes the deal a purchase rather than a loan. New York courts weigh that risk, starting with whether the contract has a reconciliation provision, when they decide whether an advance is really a loan.
Example: A $50,000 purchase price at a 1.35 factor rate gives a purchased amount of $67,500. At $401.79 per business day, about half, or $33,750, has been delivered after 84 business days.
Check that the purchased amount on the contract matches the offer you were shown.
Sources
- LG Funding, LLC v United Senior Props. of Olathe, LLC, 2020 NY Slip Op 01607 (2d Dept, Mar. 11, 2020) — New York State Law Reporting Bureau (checked 2026-09-30)