In invoice factoring, the advance rate is the percentage of the invoice's value that the company receives in a cash advance. Most advance rates range from 70%-95%, but some companies offer a 100% advance rate in specific scenarios.nnContinuing the example from above, a business factored $25k in receivables at a 2% discount rate for a total of $24,500. Let's say the advance rate is 90% - the business's cash advance is 90% of the $24,500, which works out to $22,050.nnThe remaining amount goes into a reserve account until your customers pay their invoices to the factoring company. Once they pay, the company releases the reserve minus any additional fees.nnThe two most important numbers to know in invoice factoring are the factor rate, how much it costs, and the advance rate, how much you receive. The whole point of factoring is to turn the money a client owes you into immediate working capital, so you want as high of an advance rate as possible.