Free MCA Education Quiz
MCA Education Wizard
Test your knowledge of merchant cash advances and learn critical information that could save your business thousands of dollars.
Question 1 of 8
Score: 0/0
What is a factor rate in merchant cash advances?
Essential MCA Knowledge
Factor Rates vs APR
Understanding the difference between factor rates and APR is crucial for comparing MCA costs to traditional loans.
- • Factor rates don't account for time
- • APR shows annualized cost
- • MCAs often have 40-200%+ APRs
- • Traditional loans: 6-15% APR
Payment Structures
MCA payment structures significantly impact your cash flow and business operations.
- • Daily payments (Mon-Fri)
- • Weekly payment options
- • Automatic bank debits
- • Fixed payment amounts
Common Risks
Be aware of these common MCA risks that can threaten your business survival.
- • Stacking multiple MCAs
- • Personal guarantees
- • UCC liens on assets
- • Renewal traps
Use your newfound knowledge with our other tools to evaluate MCA offers and protect your business.