Compare merchant cash advances and see what they really cost.

24 providers on the same terms, plain-English cost math, and one free request to see which ones fit. MCA Guide may receive compensation from 1West Finance or other funding partners if financing you obtain through them is funded. This doesn't affect what you pay. It never changes the data we publish.

Step 1 of 3

Your funding needs

Use your best figures from your bank statements. Nothing on this step is a credit check.

Requesting options doesn’t itself affect your credit Free, no obligation Not a lender

Diner owner reviewing numbers on a laptop at her counter after closing
What a 1.30 factor rate costs Illustrative example
Advance
$50,000
Factor rate
× 1.30
Total repaid
$65,000
Cost of the advance
$15,000
Simple annualized, 6-month payback
≈ 60%

Daily or weekly payments push the true amortized APR higher. Run your own numbers

A business owner talking through funding costs with an advisor

One request. Then the math, before you sign anything.

  1. 01

    Tell us the basics

    About a minute: amount, monthly revenue, time in business. Ranges are fine.

  2. 02

    Our partner reviews your request

    1West Finance, our funding marketplace partner, matches it with available providers. Terms depend on underwriting.

  3. 03

    Compare the real cost before you sign

    Factor rate, total payback, effective APR. You decide, or walk away. There's no obligation.

Start with step 1

Built around how your business gets paid.

Card-heavy, invoice-heavy, seasonal. Each guide covers how advances are underwritten and repaid in that industry.

How much will an MCA actually cost?

Merchant cash advances use a factor rate, not an interest rate. You repay the advance multiplied by that rate, however fast you repay. A $50,000 advance at a 1.30 factor rate costs $15,000 in fees, giving you $65,000 total repayment. Repaid over 6 months, that's a 60% simple annualized cost, or about 109% estimated effective APR with equal business-day payments. Run your own numbers with our merchant cash advance calculator.

  • 1.10–1.50Typical factor rates; most funded deals fall between 1.15 and 1.35
  • 40–200%Typical estimated effective APR, depending on factor rate and how fast you repay
  • ShorterRepayment terms raise the effective APR sharply
Bakery owner working through his week at the counter before opening
Your cost, line by line Estimate
$50,000
$10K$300K
1.30
1.201.45
6 months
3 mo18 mo
Total repayment
$65,000
Total fee
$15,000
Simple annualized cost
60%
Est. effective APR
109%

Simple annualized cost = fee ÷ advance × 365 ÷ term in days. Because MCAs are repaid as you go, the estimated effective APR (equal payments every business day, 260 a year) runs roughly 1.8–1.9× higher. Same method as our calculator.

Run the full cost analysis

We’re paid by providers. Here’s exactly what that means.

MCA Guide is free for business owners because funding companies pay for introductions. You should know how that works before you trust anything we publish.

  1. 01

    We’re not a lender

    We don’t make credit decisions, fund advances, or set terms. We compare providers and pass along requests you choose to send.

  2. 02

    How we’re paid

    MCA Guide may receive compensation from 1West Finance or other funding partners if financing you obtain through them is funded. This doesn't affect what you pay. That keeps the site free and doesn’t change the provider data we publish. Read the disclaimer

  3. 03

    Where your request goes

    To one funding marketplace partner, 1West Finance, not a list of brokers. We don’t sell your personal information. Privacy policy

How we research

Every guide is checked against primary sources: provider rate sheets, state financing-disclosure statutes, and published SBA and Federal Reserve small-business data. We update pages when terms or laws change, and correct errors when we find them.

Our editorial standards

Before you sign

Straight answers to what owners ask most about cost and repayment.

All 20 questions
What's a factor rate?
A factor rate is a decimal multiplier that determines your total repayment amount. Factor rates typically range from 1.10 to 1.50. Multiply your advance by the factor rate to get your total repayment. For example: $30,000 advance x 1.30 factor rate = $39,000 total repayment ($9,000 in fees). Unlike interest rates, factor rates do not compound — your total cost is fixed from day one. Learn more about factor rates.
How much does an MCA cost?
MCA costs vary widely. The total fee is determined by your factor rate, which typically ranges from 1.10 to 1.50. On a $50,000 advance, that means you repay between $55,000 and $75,000 total. Converted to an estimated effective APR, typical MCAs fall between about 40% and 200%, depending on the factor rate and repayment term. Additional fees may include origination (2-5%), ACH return fees ($25-$50), and underwriting fees ($100-$500). See full cost breakdown.
How is repayment calculated?
Your daily repayment is calculated as a holdback percentage of your daily credit card sales or bank deposits. If your holdback is 15% and you process $2,000 in card sales today, the provider deducts $300. On slower days with $800 in sales, you only pay $120. This variable repayment continues until the full purchased amount (advance x factor rate) is collected, typically over 4 to 18 months.
Can I pay off my MCA early?
Most MCA agreements allow early payoff, but the savings vary. Some providers offer a 10-20% discount on the remaining balance for early payoff. Others require you to pay the full purchased amount regardless of timing, meaning there is no benefit to paying early. Always ask about early payoff terms before signing — and get it in writing. Learn more about repayment options.
What credit score do I need for an MCA?
Most MCA providers require a minimum credit score of 500 to 550, though some work with scores as low as 450. Unlike bank loans, your credit score is not the primary factor — revenue is. Providers care more about your monthly sales volume and consistency. That said, better credit scores can help you negotiate lower factor rates. See our bad credit MCA guide.
Do I need collateral for an MCA?
No, MCAs are unsecured — you do not need to pledge business assets or real estate. However, most providers require a personal guarantee from the business owner, which means you are personally liable if the business cannot repay. Some agreements also include a general lien (UCC filing) on business assets. This is standard across the industry.

Learn before you sign

All guides

See which providers fit, and what they’ll cost.

Three short steps. Requesting options doesn’t itself affect your credit, and there’s no obligation to accept anything.

See my options Compare all 24 providers
What a 1.30 factor rate costs Illustrative example
Advance
$50,000
Factor rate
× 1.30
Total repaid
$65,000
Cost of the advance
$15,000
Simple annualized, 6-month payback
≈ 60%

Daily or weekly payments push the true amortized APR higher. Run your own numbers