With an BCA whether a fixed or variable term variety, you’ll probably need to pay back 15%-60% or more of the total advanced/funded amount for which you receive approval. Factor rates for MCAs are determined at origination. The expense is calculated into your scheduled payments.
Fixed Payment , an example:
Your finance costs would be as followed: ($100,000 * 1.28) + $1,000 = $129,000
Your payment would be: ($129,000 / 252) = $511.90 per day
You can use our Fixed Payment calculator to estimate your payments. The link is here.
Variable Payments , an example:
Let's assume that your daily credit card sales are $3,000 per day
Your finance costs would be as followed: ($100,000 * 1.28) + $1,000 = $129,000 << Same as the fixed payment
Your daily payment would vary, depending on the amount of credit/debit card sales you earned that day: If your sales were $3,000 that days payment to the lender would be $3,000 * 17 % = $510
However, if the next day your sales were only $2,000 then your payment would drop to $340 for that day
Your factor rate will vary depending on your business type, monthly sales, business stability, the amount of time you have had your business and other risk elements.
