Merchant cash advance pricing hides its real cost. A "1.3 factor rate" sounds like 30% — but repaid daily over six months, it's an effective APR above 100%. Enter your offer to see the honest number.
How we calculate it: total payback = advance × factor rate. We then solve for the internal rate of return of the payment stream (the same math lenders must use for APR disclosure on loans) and annualize it.
Check eligibility — cheaper products may fit your profile.
Check Your Eligibility →The factor rate is a fixed multiplier on the whole advance, but you repay in daily or weekly installments — so on average you only hold about half the money for the payback period. Paying a fixed fee on money you return quickly produces a very high annualized rate.
Usually not — payback is fixed at advance × factor rate regardless of speed, and paying early actually raises your effective APR. Some providers offer prepayment discounts; ask before signing.
A business line of credit, working capital term loan, or invoice factoring (if you invoice other businesses) are typically far cheaper. MCAs make sense mainly when speed matters more than cost or when other products have declined you.