Answers
There is no single good number, because a factor rate means different things at different repayment speeds. Factor rates on Canadian merchant cash advances often fall roughly between 1.10 and 1.50. Compare offers on total dollars repaid, the amount actually deposited and the expected time to repay.
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There is no single good number, because a factor rate means different things at different repayment speeds. Factor rates on Canadian merchant cash advances often fall roughly between 1.10 and 1.50. Compare offers on total dollars repaid, the amount actually deposited and the expected time to repay.
Key facts
Related: Business Funding Answers for Canadian Owners · Business Funding Requirements in Canada · What Business Funding Costs in Canada, Compared · Documents Needed for Business Funding in Canada · Merchant Cash Advance Canada: How It Works and Costs
A factor rate multiplies the advance to give the total amount to be repaid. A $40,000 advance at 1.25 means $50,000 in total, a cost of $10,000. The rate does not change with time, so a 1.25 repaid over four months has a much higher annualized cost than the same rate repaid over twelve.
| Offer | Advance | Factor | Total repaid | Months | Cost per month held |
|---|---|---|---|---|---|
| A | $40,000 | 1.20 | $48,000 | 6 | about $1,333 |
| B | $40,000 | 1.30 | $52,000 | 10 | $1,200 |
| C | $40,000 | 1.25 | $50,000 | 8 | $1,250 |
Offer A has the lowest total cost; offer B costs least per month held but most in total. Which is better depends on how long you need the money and what the payment does to cash flow.
If your question is about your own file rather than the general rule, the fastest route to a specific answer is a review. Send a signed application and your last four months of business bank statements, mention this question in a note, and the response will address it directly. You can also call (305) 384-8391 and ask before applying; there is no cost to ask.
Divide the cost by the number of months you expect to hold the money. A 1.20 repaid over four months costs far more per month than a 1.30 repaid over twelve. That single step removes most of the confusion between offers.
Then check what is deducted at funding. An origination fee lowers the amount that reaches your account, which raises the true cost of the same factor rate.
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
On its own it is a low factor, but check fees and the repayment speed.
Advertised rates are best cases. Your file's risk drives your rate.
Approximately, using the expected time to repay. The calculator does this.
Educational information only. It is not legal, tax or accounting advice.
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