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Pricing
What factor rate will apply to my advance, and how is it determined?
MCAs use a factor rate instead of an interest rate.
INSTANT.CREDIT
Dec 2, 2025 · 2 min read
MCAs use a factor rateinstead of an interest rate.
Example:
- Advance: $50,000
- Factor: 30
- Total payback = $50,000 × 1.30 = $65,000
The factor rate is based on:
- Time in business
- Average monthly deposits and sales volatility
- Industry and margins
- Chargeback and NSF history
- Existing debt and obligations
- Quality and completeness of documents
Higher risk or urgency usually means a higher factor; stronger stability and financials usually mean a lower factor.
