Can I Negotiate the Price of an MCA?
Sometimes. The factor rate, fees, term and payment schedule can all move a little, and competing offers are the strongest reason for a funder to move. Ask one clear question, in writing, like whether they can match a lower factor or drop an origination fee. Don't bluff about offers you don't have. Funders talk to brokers and can often tell.
Which parts of an MCA offer can move?
| Term | How often it moves | What helps |
|---|---|---|
| Factor rate | Sometimes | A real competing offer |
| Fees | Often | Asking which fee is required |
| Payment frequency | Often | Uneven daily sales |
| Early payoff discount | Sometimes | Asking before you sign |
What does this look like with real numbers?
On $40,000, moving the factor from 1.40 to 1.36 saves $1,600. Dropping a $1,000 fee saves $1,000. Funders often say no to one and yes to the other, so ask about both.
How do you ask for a better price?
- Get at least two offers so you have something to compare.
- Ask what the funder's base price is and whether broker pay is built in.
- Ask whether fees can come off the funding, or be lowered.
- Ask for an early payoff discount in writing.
- Ask whether a smaller amount or shorter term changes the factor.
Being polite and specific works better than asking for a lower rate in general. A funder that won't move on price often still moves on fees, the payment schedule or the payoff terms. See how we're paid for what to ask any broker.
When do you have the most room to negotiate?
Before you accept, and when more than one funder wants the file. A competing written offer is the strongest thing you can bring. Once you've signed and the money has landed, the price is set, and the only lever left is an early payoff discount if the contract has one.
What should you ask the funder?
- Can you match this factor?
- Which fees are required?
- Is there an early payoff discount?
- Can the payment be weekly?
Where can you check your own numbers?
The short version is in the Cost FAQ. To check the numbers on your own advance, use the factor rate calculator.
Want a second look at your advance?
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.