A/R Finance & Factoring Terms GLossary

What isMCA Factor Rate

The factor rate multiplied by the advance amount equals your total loan obligation to the Merchant Cash Advance provider. For example, if your MCA loan amount is $50,000 and your factor rate is 1.2, your total payback amount will be $60,000 ($50,000 x 1.2). Note: Your APR can change dramatically if you pay this $60,000 back daily over 1 month vs 3 months vs 6 months. See the example MCA Rate Chart found here for the Factor Rate to APR conversion.

Audio Definition/Pronunciation

OTHER TERMS BEGINNING WITH "M"

Back to Top

Best Factoring Company

Get Started Immediately