This is EXPENSIVE — see the true APR before signing
MCA costs are estimates. Actual factor rates and holdback terms vary. MCA is not regulated like bank loans — get legal and financial advice first.
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| Lendio | $75/funded loan | FlexOffers |
| Bankrate | Compare business loan offers | CJ Affiliate |
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An MCA is a lump-sum cash advance repaid through a percentage of future credit card sales. Unlike loans, MCAs are not subject to interest rate caps, making them expensive but fast to obtain.
The lender takes a fixed percentage of your daily credit card receipts (typically 10-20%) until the advance plus fee is repaid. If sales are slow, repayment slows with them.
Factor rates typically range from 1.1 to 1.5. A factor rate of 1.3 on a $50,000 advance means you repay $65,000 total. This is NOT the same as 30% interest — the effective APR can be much higher.
MCAs are expensive but fast. They're best for short-term cash flow gaps when you can't qualify for traditional financing. The high cost makes them unsuitable for long-term funding.