Resource
Questions to Ask Before Accepting an MCA
A short, practical checklist to run through before you sign anything.
An MCA offer can move fast, which is part of the appeal — but it's still worth slowing down long enough to ask a few direct questions before accepting.
The checklist
What is the total payback amount, in dollars, not just the factor rate?
How is the payment calculated — a fixed daily/weekly amount, or a percentage of sales?
What is the estimated repayment period, and is it based on my actual sales history?
Are there any origination, administrative, or other fees beyond the factor rate?
Is there a prepayment discount if I pay it off early?
What happens if my sales drop significantly during the repayment period?
Is this a fixed payment (ACH withdrawal) or true percentage-of-sales (split funding)?
One more thing
Get the full written terms before you sign — not just a verbal summary. A legitimate funding provider will have no issue giving you the complete agreement to review on your own time.