Merchant cash advance vs. term loan: compare in dollars
Factor rates hide the real cost. Convert both offers to total dollars repaid before you choose.
Marcus Ellery1 min read
A $50,000 advance at a 1.35 factor rate costs $17,500, often repaid in under a year. A three-year term loan for the same amount can cost a fraction of that in interest.
Ask every lender for the total repayment amount and the payment schedule, in writing.
