A merchant cash advance is priced with a factor rate, not an interest rate. Enter your advance amount, the factor rate, and an estimated term to see total payback, total cost, and the estimated daily and weekly payment.
Key takeaways
- Total payback = advance × factor rate (fixed).
- Factor rate sets the cost; holdback/term sets the speed.
- Shorter terms raise the effective APR.
- Relief = lowering the daily/weekly payment, not paying it off.
- From $10,000, decisions in 24-48 hours.
How MCA pricing works
Total payback = advance × factor rate. A $30,000 advance at a 1.35 factor rate means you repay $40,500 — a $10,500 cost — regardless of how fast you pay. The factor rate sets how much; the holdback or fixed debit sets how fast.
Daily vs weekly
Most advances are repaid by a daily or weekly debit. A shorter term means a bigger daily payment and a higher effective APR; a longer term eases the daily payment. If the daily debit is straining cash flow, ask about reconciliation or a relief structure that lowers the daily or weekly payment.
Apply with Merchant Fund Express in 60 seconds. Decisions in 2–4 hours.
Watch the effective APR
Because the cost is fixed but the term is short, the effective APR on an advance is often much higher than a term loan. Use the factor-rate-to-APR calculator to compare offers on equal footing.
Frequently asked questions
Is the factor rate an interest rate?
No. A 1.35 factor rate is a multiplier on the amount, not an annual interest rate. The cost is fixed up front.
Does paying early save money?
On a traditional MCA, usually not much — the payback is fixed. Some funders offer a prepayment discount; ask before signing.
My daily payment is too high — what can I do?
Ask about reconciliation (aligning the debit to real sales) or a relief structure that lowers the daily/weekly payment. It eases cash flow; it is not paying the advance off early.
How fast can I get an advance?
Often 24-48 hours after a bank-statement review, from $10,000, with FICO 500+ considered.
