How are merchant cash advance payments calculated?
Merchant cash advance payments are calculated one of two ways: a percentage of your daily or weekly revenue (so payments rise and fall with sales), or a fixed daily/weekly ACH draft estimated from your average revenue. Either way, the total you'll repay is set on day one: the advance amount multiplied by a factor rate of typically 1.15-1.50. Misunderstanding this math is how owners end up with daily drafts they can't sustain. Here's exactly how the numbers work, so you can evaluate any offer in front of you.
This page is one option inside our broader guide to Alternative Financing. See how it stacks up against the other alternative-funding tools we track.
Last updated · Reviewed by Cody Dreis
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The two payment structures, with real numbers
Percentage-of-revenue (the classic structure): The funder takes an agreed percentage of your incoming revenue, often drafted daily, until the purchased amount is repaid. If the holdback captures roughly $500 a day in an average month, repayment runs about 6 months; in a strong month you pay more per day and finish sooner. Important: finishing sooner does not reduce the $65K. An MCA is not a loan: it's a purchase of your future receivables, so there's no interest to "save" by early payoff.
Fixed daily or weekly ACH: The funder estimates your average revenue from 3-6 months of bank statements and sets a flat draft, say, $1,300 every business day. This is predictable but rigid: the draft doesn't shrink when sales dip, which is where cash flow trouble starts.
Either structure means money leaves your account constantly, not monthly. Before signing, calculate the daily draft as a percentage of your daily deposits, if it's a thick slice, the advance will strain you.
Alternatives with friendlier payment math
Working capital loans: $5K-$500K with set short-term payments and usually lower total cost. Best when you want MCA-like speed without daily revenue capture.
Business lines of credit: $10K-$250K+, draw what you need, pay interest only on the drawn balance. Best for managing uneven cash flow instead of borrowing a lump sum against it.
A/R financing / invoice factoring: 70-90% advanced against invoices, repaid when your customer pays. Best for B2B firms whose "cash crunch" is really a receivables timing problem.
How Quordx Capital Works
One application, about 5 minutes, plus your bank statements lets Quordx Capital's matching process model what daily or weekly payments your revenue can actually carry, then match you to the 3-7 best-fit lenders from a 50+ lender network. You see offers with the payment math spelled out in dollars, decisions in 24-48 hours, and funding typically within 3-7 business days.
What to Expect
Every Quordx Capital offer comes with full disclosure: total repayment, draft frequency, and what it means for your weekly cash. If an MCA's payment schedule would squeeze your business, you'll hear that directly: Quordx Capital would rather decline to submit than place you in a product that hurts you. The matching is free and carries zero obligation.
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Written by
Cody Dreis
Founder, Quordx Capital
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