How much does a merchant cash advance cost?
That makes MCAs one of the most expensive forms of business funding, and the short repayment window (daily or weekly drafts) makes the effective annual cost far higher than the factor rate suggests. Before you take one, you should see the full math, and see whether a cheaper product would approve you instead.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
The real math behind MCA pricing
MCAs don't use interest rates. You receive an advance of $5K-$500K, and the funder purchases a fixed amount of your future receivables: the advance multiplied by the factor rate. Three cost dynamics matter:
Unlike a loan, repaying in 4 months instead of 12 doesn't save you a cent: it just compresses the same cost into less time, which *raises* the effective APR dramatically.
Repayment is a daily or weekly slice of revenue: Because the funder takes a percentage of what comes in, strong sales months mean you pay it off faster, and faster payoff at a fixed cost means a steeper effective rate.
Stacking multiplies the damage: Taking a second advance on top of the first compounds daily drafts until cash flow buckles.
Cheaper alternatives worth checking first
Working capital loans: $5K-$500K, short-term, similar speed to an MCA but typically lower total cost. Best first stop for fast operational cash.
Business lines of credit: $10K-$250K+ revolving; you pay interest only on what you draw. Best for recurring gaps an MCA would over-solve.
A/R financing / invoice factoring: advances of 70-90% of invoice value. Best for B2B businesses waiting on customer payments.
Merchant cash advances: sometimes the only fit for very recent businesses or scores near 500-550. If so, Quordx Capital shows the total repayment figure in plain dollars before you decide.
How Quordx Capital Works
Submit one 5-minute application with your bank statements and ID, and Quordx Capital's matching process screens 50+ lenders, including both MCA funders and cheaper alternatives, to surface your 3-7 strongest matches ranked by approval odds. You compare real offers side by side, with every cost disclosed. Decisions typically take 24-48 hours; money lands in 3-7 business days, some products in 1-3.
What to Expect
Quordx Capital treats MCAs as a tool of last resort, not a default, if a lower-cost product will approve you, you'll see it first, and if an MCA truly is your only option, you'll know the exact dollar cost before signing. Checking costs nothing, obligates you to nothing, and an honest "this is too expensive for your situation" is always on the table.
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No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
Written by
Cody Dreis
Founder, Quordx Capital
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