Actual Payments Made

The cumulative payments made by the merchant on an advance, including any amounts exceeding the scheduled payment plan.

Advance Agreement / MCA Agreement

The binding legal document between the merchant and Two River Funding LLC specifying repayment terms, factor rate, and obligations.

Anticipated RTR

The projected amount expected to be received from merchant payments on advances in your portfolio, based on current agreements and projected cash flows.

Balance

The remaining amount due to your portfolio from merchants under active advances.

Blended ROI

The annualized return on your entire portfolio, calculated assuming no future merchant defaults or changes to advance agreements.

Cash Flow Projection

An estimate of future payments expected from merchants in your portfolio, used to forecast returns and liquidity.

Charge-Off

The portion of an advance considered unrecoverable after collection efforts have been exhausted. Charge-offs impact default rate and realized portfolio returns.

Commission

The fee paid to brokers or third-party partners for submitting a merchant cash advance deal to Two River Funding LLC.

Complete Percentage

The percentage of a deal that has been fully repaid by the merchant, including both principal and additional payments.

Current Invested Amount

The total principal currently deployed across active merchant cash advances in your portfolio.

Default Rate

The percentage of principal lost due to merchant defaults, calculated as:

\text{Default Rate} = \frac{\text{Lost Principal}}{\text{Total Principal Invested}}

Early Payoff / Prepayment

When a merchant repays their advance before the scheduled end date. This may affect projected returns and is often subject to adjustment in your portfolio’s RTR.

Factor Rate

The cost of capital expressed as a multiplier of the principal advance. For example, a 1.35 factor rate means that for a $10,000 advance, the merchant will repay $13,500. Factor rates represent the total repayment obligation rather than interest.

Management Fee

A servicing fee covering the cost of administering, tracking, and collecting payments from merchants.

Merchant(s)

Businesses that have accessed working capital via the platform. These are the borrowers whose cash flow backs the advances in your portfolio.

Net Investor Return

The total return received by an investor after deducting syndication, management, and other applicable fees.

Participant Share

The portion of a deal held by a particular syndicate investor, expressed as a percentage of the total investment.

Paid Principal

The portion of each payment that is applied toward returning your original principal investment.

Paid to Date (PTD) / Cash to Date (CTD)

The total cash returned to your portfolio to date, including principal and earnings received from merchants.

Portfolio Diversification

The practice of spreading your investments across multiple merchant cash advances to reduce risk exposure to any single merchant default.

Principal Investment

The original capital contributed to your investment portfolio, minus any principal that has already been returned from merchant repayments.

Projected Portfolio Value

The current estimated total value of your portfolio, including:

• Anticipated RTR from all merchants
• Available cash in your portfolio wallet
• Any accrued but unpaid earnings

Profit

The total earnings realized in your portfolio, including interest, fees, and any additional payments above principal.

Payments

The total number of payments scheduled for a merchant to repay the advance, according to the advance agreement.

Payments Remaining

The number of scheduled payments the merchant has left to complete the advance, assuming no modifications or early payoff.

Payment Amount

The total amount of money received from a merchant for a single payment under an advance.

Projected Portfolio Value

The current estimated total value of your portfolio, including anticipated payments (RTR) from all merchants, plus any cash in your wallet.

Reserve Amount

Cash retained by the platform as a cushion against potential defaults or adjustments to merchant payments.

Right to Receive (RTR)

The legal entitlement of an investor or funder to receive payment from a merchant for funds advanced. In the context of a Merchant Cash Advance (MCA), RTR represents the investor’s right to receive payments from the merchant according to the terms of the advance.

Syndication Fee

A one-time fee charged for including a deal in the investment syndication platform.

Servicing Agent

The entity responsible for collecting payments from merchants and allocating funds to investors. Two River Funding LLC or its designated servicer acts in this capacity.

Total Invested Amount

The total amount invested in a deal, including principal, prepaid charges, and any commissions paid.