How to compare MCA offers: the five-minute checklist
[Photo: Hands reviewing an agreement with a pen]
Two offers with the same headline amount can cost thousands of dollars apart. Put every offer through this checklist before you sign.
The checklist
| Check | Offer A | Offer B |
|---|---|---|
| Funding amount | ||
| Fees deducted up front | ||
| Net amount you receive | ||
| Factor rate | ||
| Total repayment | ||
| Payment amount and frequency | ||
| Estimated term | ||
| Estimated APR (if disclosed) | ||
| Early payoff discount? | ||
| Reconciliation if sales drop? | ||
| Personal guarantee? | ||
| Confession of judgment? |
Five questions to ask
- What will land in my account after every fee?
- What's the total I'll repay, in dollars?
- What's each payment, and can my slowest week carry it?
- What happens if my sales drop? Look for a reconciliation clause.
- What happens if I want to pay it off early?
Red flags
- Upfront fees before you're funded.
- Pressure to sign the same day without time to read.
- An offer that won't put the total cost in writing.
- A broker promising guaranteed approval.
Each funding partner sets its own terms. We present every offer with its total cost so you can compare. See what you qualify for.
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This article is general information, not financial or legal advice. Daybook Capital is a broker, not a lender or funder. Each funding partner sets its own criteria, pricing, terms and fees.