Sell Rate: Meaning in a Merchant Cash Advance
The sell rate is the factor rate a merchant is actually offered on a merchant cash advance. It equals the funder's buy rate plus the points that make up the broker's commission, and it's the number that sets your total payback.
What does sell rate mean?
Think of it as the retail price. The funder quotes a wholesale price to the broker, called the buy rate. The broker's pay is built in on top, and the result is the sell rate you see on your offer. If you went straight to a funder with no broker, their own sales team has a similar markup built in, so a direct deal isn't automatically cheaper.
Why does sell rate matter to your business?
The sell rate is the factor rate on your contract, so it drives the full cost of the advance. Knowing it's made of two parts helps you ask better questions. If two offers from the same funder show different sell rates, the gap is almost always commission. Ask how the broker is paid and whether it's disclosed in the paperwork. With us it is: the funder pays our commission on funding, and it shows in your documents.
How do you compare sell rates fairly?
Compare sell rates only on offers with similar terms. A lower sell rate paired with a much shorter term, or with heavy fees taken at funding, can still cost you more day to day. Put the factor rate, the payment, the term and the net funding side by side before you choose.
Where will you see it?
Your offer summary and contract show it as the factor rate. The word sell rate itself is funding-side language, so you'll hear it more from brokers than read it in documents.
Which terms are related to sell rate?
The full list is in the glossary. Owners ask about this in Is an MCA factor rate monthly or for the whole advance?.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.