MCA Snapshot
| Advance Size | Factor Rate | Total Payback | Estimated Term | Daily Draw | Funding Speed |
|---|---|---|---|---|---|
| $15k–$75k | 1.18–1.32 | $17.7k–$99k | 90–140 business days | $180–$720 | Same day |
| $75k–$250k | 1.24–1.39 | $93k–$347k | 120–200 business days | $650–$1,850 | 24 hours |
When an MCA Makes Sense
- Emergency equipment replacement when other credit is maxed.
- Bridging a seasonal dip for 6–10 weeks while service plans renew.
- Covering payroll while waiting on large insurance payouts.
- Short-term marketing campaigns tied to specific install goals.
Aim to keep the daily draw under 10% of average deposits. If you’re stacked on more than two advances, prioritize a consolidation quote.
Compare tools in Seasonal cash swings – line of credit, MCA or factoring? and keep customer offers compliant with The least brain-damage path to offering financing without a compliance nightmare.
MCA Cost Calculator
Plug in your advance amount, factor rate, and card split to see true APR and term. Adjust monthly revenue ±20% to see best- and worst-case payback timelines.
Exit Strategy
- Reapply for a term loan after 3–4 months of on-time MCA performance.
- Use a line of credit for ongoing working capital once revenue stabilizes.
- Stack only when incremental ROI is proven and payment-to-revenue stays under 15%.
FAQ
Is an MCA a loan?
No. It’s a purchase of future receivables. That’s why approvals are faster but rates are higher.
Can I negotiate the factor rate?
Yes. Stronger deposits, higher credit, and fewer NSF days qualify for lower factors. We’ll quote multiple providers.
What documents are required?
Expect 3–6 months of business bank statements, a voided check, copy of ID, and proof of ownership.
Will the provider file a UCC?
Yes, almost every MCA includes a blanket UCC filing. Payoff letters clear it once paid in full.
Can I pay it off early?
Most MCA contracts require the full factor payback. Some offer small rebates—ask before signing.