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A line charges on the balance you carry. Enter a draw, a monthly rate and how long you hold it to see the cost.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, here is the short answer: A line charges on the balance you carry. Enter a draw, a monthly rate and months to see the cost.
Illustrative arithmetic only. This is not an offer or a quote; real terms depend on your file and the funder.
A business line of credit charges on the balance you carry, not on the limit. Draw $40,000 for four months at 1% a month and the interest is about $1,600 if the balance stays, or about $800 if it is repaid evenly. That is the central difference from a fixed-payback advance, where the cost is set at funding.
| Option | Cost |
|---|---|
| Line of credit, 1% a month, 4 months, repaid evenly | About $800 on $40,000 |
| Advance at factor 1.25 on $40,000 | $10,000 |
See MCA vs line of credit and business line of credit. A line sits on the tier-one sheet: 3+ years and a 650 score.
An owner draws $40,000 for four months at 1% a month. If she repays evenly, interest is about $800; if she carries the balance, it is about $1,600. The same amount as an advance at 1.25 costs $10,000. The line is the cheapest tool if she qualifies.
Source: Merchant Fund Express.
Typically not; confirm any maintenance fee. That is how Merchant Fund Express reads it on a real file.
It depends on the file.
This tool uses a monthly rate. Multiply by 12 for a simple annual figure.
Generally yes; that is the point of a line.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
