Can you show me an APR-equivalent calculation for comparison across products?
Yes, this is a good question to ask. Even though an MCA is structured as a purchase of receivables, many providers will […]
Do you charge any non-sufficient funds (NSF) or late fees?
If your remittance is collected via PAD and a debit bounces, most providers will charge: An NSF fee for each returned payment […]
Do you charge any fees that are deducted from the advance at funding?
Often, yes. Example: Approved advance: $50,000 Origination fee: $750 PPSA fee: $75 Net funds you receive: $50,000 – $750 – $75 = […]
Are there origination, underwriting, or platform fees I should expect?
There may be, and they should be disclosed clearly. Common fees: Origination or underwriting fee (flat or a small percentage of the […]
Is the remittance a percentage of sales, a fixed PAD, or a hybrid?
You’ll usually see one of these: Percentage of sales (split-funding) A fixed percentage of card batches goes directly to the funder Payments […]
What is the holdback percentage from card sales, and can it be adjusted seasonally?
The holdback is the percentage taken from your card batches (for split-funding). Typical ranges: Roughly 8–20% of eligible card sales, depending on […]
What is the total payback amount and the expected duration based on my sales profile?
Your total payback is simple: Advance × factor rate = total payback The duration depends on how you remit and how your […]
What factor rate will apply to my advance, and how is it determined?
MCAs use a factor rate instead of an interest rate. Example: Advance: $50,000 Factor: 30 Total payback = $50,000 × 1.30 = […]
Do you require exclusive processing with a specific payment processor?
Not usually. Common setups are: Split-funding: your existing processor sends an agreed percentage of your card batches directly to the funder PADs […]
How quickly can you deliver funds after approval?
Speed is one of the main reasons people choose an MCA. Once your application is complete and you’ve provided bank/processor statements and […]
What is the maximum advance size you’ll consider for a first-time client?
For a first facility, the maximum advance is usually tied to your recent average monthly deposits and the consistency of your sales. […]
Do you fund sole proprietors, or only corporations/partnerships?
Many MCA providers fund: Corporations and partnerships, and Sole proprietors / self-employed owners For sole proprietors, expect: Extra ID and bank verification […]