What is MCA Factor Rate?
The factor rate multiplied by the advance amount equals your total loan obligation to the Merchant Cash Advance provider. For example, if your MCA loan amount is $50,000 and your factor rate is 1.2, your total payback amount will be $60,000 ($50,000 x 1.2). Note: Your APR can change dramatically if you pay this $60,000 back daily over 1 month vs 3 months vs 6 months. See the example MCA Rate Chart found here for the Factor Rate to APR conversion.
Audio Definition/Pronunciation
OTHER TERMS BEGINNING WITH "M"
- Management Buyout
A management buyout is when a company's existing managers acquire a large part or all of the company from either the parent company or from its private owners. Management and leveraged buyouts became popular in the 1980's.
- MCA ACH Loan Rule of Thumb
Whatever the MCA Rate Factor dollar amount is over the payback period, your net profit should be more. If not, at the end of that period you will be that much closer to bankruptcy. For example, if the ACH loan…
- Merchant Cash Advance (MCA) or MCA Loan
A Merchant Cash Advance (MCA) or Advance Loans aren’t technically a loan but are one of the most popular methods used by small business owners who deal with credit cards (restaurants and other retail merchants). Although often referred to as…
- Mezzanine Financing
Mezzanine financing is any subordinated debt that is only senior to a company's common stock and junior to any type of secured financing. Mezzanine financing is structured either as debt or preferred stock.
