Cost Breakdown
Breaking down the costs and fees of MCAs
Understanding MCA Costs
Factor Rates Explained
Factor rates are the primary cost metric for MCAs, expressed as a multiplier that determines your total repayment amount.
Example Calculation:
Advance Amount: $100,000
Factor Rate: 1.20
Total Repayment: $100,000 × 1.20 = $120,000
Cost of Capital: $20,000
Common Additional Fees
- Origination Fee
2-4% of advance amount
- Administrative Fee
$25-50 monthly
- ACH Fee
$1-2 per transaction
Cost-Saving Tips
- Compare Multiple Offers
Get quotes from several providers
- Negotiate Terms
Ask about early payoff discounts
- Review All Fees
Look beyond just the factor rate