Term length
Term is the lever between payment size and total cost. A shorter term costs less and pinches more.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, here is the short answer: Term trades payment size against total cost. A shorter term costs less and pinches more; a longer term eases the payment and raises the total.
The term is a function of the payback and the payment you can carry. A larger payment repays faster. A smaller payment extends the term. Funders typically target a term that fits a share of your revenue they are comfortable with.
| Short | Medium | Long | |
|---|---|---|---|
| Payback | $62,500 | $62,500 | $62,500 |
| Term | 4 months | 7 months | 12 months |
| Weekly payment | About $3,600 | About $2,050 | About $1,200 |
| Monthly outflow | About $15,600 | About $8,900 | About $5,200 |
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
A longer term eases the payment, and the total payback is usually higher because the money is outstanding longer. It also keeps your account committed longer and delays your next financing.
Use the MCA payment calculator to test terms.
An owner is offered $62,500 payback over four months at about $3,600 a week or twelve months at about $1,200. Her margin cannot carry $3,600 in the slow quarter, so she picks seven months at roughly $2,050 and a total in between. The right term was the shortest one her slowest month could carry.
Source: Merchant Fund Express.
Often you can choose among options. Ask for more than one. That is how Merchant Fund Express reads it on a real file.
Usually, in total dollars.
See reconciliation or consolidation.
Yes. A smaller payment can make a borderline file serviceable.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
