Vol. I · Independent Publication● Not a Lender · Not a BrokerBy Bar Alezrah
The MCA Guide
All the funding facts that are fit to print
Special Report · Front Page

What a fast advance
actually costs you.

Merchant cash advances promise capital in days. They deliver debt that can compound for years. Plug in your numbers, the paper does the math, so you do not have to trust a broker's.

By Bar AlezrahReading time · 7 minUpdated May 2
The Rate TableLive
Your advance, translated into a true cost.
Advance Amount$50,000
Factor Rate1.35
Holdback (% of daily sales)12%
Daily Revenue$3,500
Effective APR79%
Total Paid Back$67,500
Cost in Fees$17,500
Daily Payment$420
Term7.7 mo (161 days)
40–350%
Typical MCA effective APR
$17,500
Fees on a $50K advance
1–3 days
Time to funding
5–18 mo
Typical repayment window
The Three Paths

Where are you in the story?

Pick your starting point. The guide adapts to the situation.

I.
Before · Step 1

You're considering an MCA.

Cheaper alternatives exist. Here's how to fix your cash flow without signing a confession of judgment.

Explore options →
II.
During · Step 2

You're about to sign.

How to read the contract, spot red flags, negotiate the factor rate, and avoid the traps that bury businesses.

Learn how →
III.
After · Emergency

You're stuck in MCA debt.

Settlement, restructuring, and legal options. A playbook for getting out, written by people who have.

Find help →
The Mechanics

How an MCA really works,
in four acts.

The first three sound convenient. The fourth is where the trap closes.

Act I

You Apply

A short form. Three months of bank statements. Approval in hours. By design there is almost no friction, which is the first warning sign.

Act II

You Are Funded Fast

One to three business days. No collateral, no covenants, no relationship. Speed is the product. You pay dearly for it.

Act III

Payments Begin

The funder sweeps 10 to 25 percent of your daily card sales. Every weekday. Every holiday. Whether you had a good day or not.

Act IV · The Reveal

You Pay Back Far More

On a $50,000 advance at 1.35 factor, you repay $67,500, a $17,500 fee. Annualized, that is an effective APR north of 60 percent. Sometimes 300.

The Real Cost

A $50,000 loan,
four honest prices.

Same principal. Same term. Very different totals. The industry rarely shows them side by side. We will.

The chart reads left to right, most expensive first. The most expensive product, by a wide margin, is also the one most aggressively marketed to small businesses. That is not an accident. It is a feature of the channel.

Read the full report →
Source: Industry averages, 2026 · Total repaid over 9-month term
$50,000 Principal · Total Repaid
9 mo term
MCA
$67,500
Online Lender
$58,000
SBA Loan
$53,500
Bank LOC
$52,500

From the Editor's Desk

Reported, sourced, and written for owners, not for lenders.

Investigation · 12 min read

The Confession of Judgment: How a four-word clause bankrupts small businesses.

Tucked deep in the contract, it waives your right to a day in court. One missed payment and the funder can freeze your accounts, before you've heard you're in default.

When the UCC filing arrives, it is usually too late. The borrower thought they were financing a season. The funder thought they were writing a lien. Both were right, and only one had read the paper. This is the first piece in a series on the legal architecture of merchant cash advance contracts, and why a product marketed as a "purchase of future receivables" looks, walks, and collects like a loan.

By Bar Alezrah · Updated April 19