Should I Take the Biggest MCA Offer?
Usually not. The biggest offer comes with the biggest payment, and every extra dollar costs its factor rate. Take the amount that solves the problem you called about, with a payment your slowest month can carry. If you expect to need more later, a smaller advance now and a renewal later can cost less than taking the extra today.
What does this look like with real numbers?
Say you need $30,000. One funder offers $30,000 at 1.35, another offers $50,000 at 1.35. The bigger one costs $17,500 instead of $10,500, and its payment is two-thirds higher. The extra $20,000 sits in your account costing $7,000.
How do you pick between offers?
- Write down the amount you need and why.
- Check each payment against your slowest month.
- Compare cost per dollar, not the headline amount.
- Ask whether a smaller amount changes the factor.
Should you take the offer with the lowest payment?
Not on its own. A low payment usually comes with a longer term or a larger total payback. Pick the offers whose payment your slowest month covers, then compare total payback in dollars among the ones that pass that test.
What does the extra money cost?
Say the smaller offer is $30,000 at 1.35 and the bigger one is $50,000 at 1.38. The extra $20,000 comes with $19,000 more in cost and a bigger daily payment. If the project only needs $30,000, the extra money sits in the account while you pay for it every day. Ask for the amount you need for a use that pays you back, and keep the rest of your capacity for later.
If the bigger offer is the only one that covers the job, check the combined payment against a slow week before you take it.
What should you ask the funder?
- Can you fund the amount I need instead?
- Does a smaller amount change the factor?
- What's the payment on each amount?
- When can I renew if I need more?
Where can you check your own numbers?
The short version is in the Offers FAQ. To check the numbers on your own advance, use the offer comparison tool.
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.