Calculator
What is this cash advance really costing you?
Merchant cash advances quote a “factor rate” and never an APR, because the APR is the part that would stop you signing. Here it is.
On your agreement this is the multiplier. 1.38 means you repay $1.38 for every dollar you got. More on how these work.
If an SBA 7(a) refinanced it
10 years at prime + 2.75| Your advance | SBA 7(a) | Difference |
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SBA will refinance an advance if you can show the proceeds went into the business and the new payment is meaningfully lower. That second test is nearly always satisfied — the obstacle is usually that a lender wants the business current and stable, which is hard once daily debits have started. Talk to a lender sooner rather than later.
Common questions
Can an SBA loan refinance a merchant cash advance?
Sometimes. An MCA used for genuine business purposes can often be refinanced into a 7(a) if it is properly documented and meets the SBA’s refinance rules. It is one of the more common reasons borrowers seek a 7(a). See if refinancing makes sense.
Why are merchant cash advances so expensive?
MCAs quote a “factor rate,” not an interest rate, and take daily or weekly repayments — which routinely works out to a triple-digit effective APR. This tool converts the factor rate into what you are really paying.
Is an MCA a loan?
Legally it is usually structured as a purchase of future receivables, not a loan, which is how providers sidestep lending rules. The cost, however, behaves like very expensive debt — and it can quietly block you from qualifying for cheaper SBA credit.
Read the guide
Want the rules behind this calculator? SBA loan with an existing MCA walks through it in plain English — the SBA requirements, the data, and what lenders actually look for.