MCA fees
The factor rate is the headline. Fees are the fine print. Add them up before you compare offers.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, here is the short answer: Origination, administration, wire and payoff fees can sit outside the factor rate. Count them against the cash you actually receive.
| Fee | What it is |
|---|---|
| Origination or underwriting | A percentage deducted from the amount at funding |
| Administration or processing | A flat or percentage fee for setting up the account and the debit |
| ACH or payment fees | Charges per debit or per failed debit |
| Wire fee | A flat charge to send the money by wire |
| Payoff or termination | A charge to close the account or file a lien release |
| Item | Amount |
|---|---|
| Approved amount | $50,000 |
| Origination fee 4% | $2,000 |
| Wire fee | $50 |
| Net received | $47,950 |
| Factor 1.25 payback | $62,500 |
| Cost against cash in hand | $14,550 |
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
A 4% fee on a $12,500 advance cost looks small, but measured against what you actually received, the real cost is higher than the factor rate suggests.
See origination fee and net funding in the glossary, and MCA cost for the full count.
A $40,000 advance at 1.25 shows a cost of $10,000, and a 5% origination fee and a $75 wire take the cash received to $37,925. The real cost against that cash is $12,075. An owner who asked for net proceeds in writing saw it before signing and negotiated the fee down to 3%. The factor rate was never the whole price.
Source: Merchant Fund Express.
Sometimes. They can be part of a counteroffer, so ask. That is how Merchant Fund Express reads it on a real file.
You see the amount, the schedule and the total repayment, including any fees, before you sign.
Not usually. They are separate and deducted at funding or collected over time.
The amount you actually receive after fees are deducted.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
