What a merchant cash advance costs and how you repay it

The cost of an advance is expressed as a factor rate: a multiplier applied to the amount advanced that sets one fixed total repayment. A $50,000 advance at a factor rate of 1.30 means $65,000 repaid in total. A factor rate is not an interest rate and not an APR, and it does not compound.

Repayment is collected as set daily or weekly pre-authorised withdrawals from your business bank account. The withdrawals are a fixed amount, not a percentage of daily sales, and they do not fall automatically in a slow week.

Any fees are listed on your offer and are either deducted from the amount deposited to you or paid separately, never both. Early payoff is governed by the terms of your specific agreement.

Frontier Funding Inc., Toronto, Ontario, Canada. Phone 1-226-594-0260. Email info@frontierfunding.ca.