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 show you an APR-style comparisonso you can compare it with loans or lines of credit.

A rough approach is:

• Estimate the average daily or weekly remittance
• Estimate how long it will take to repay
• Use those cash flows to calculate an internal rate of return (IRR), which gives you an APR-like figure

Just keep in mind:

• APR doesn’t capture the value of speed and flexibility
• The real decision is whether the project you’re fundingproduces more profit than the cost of capital