What does a merchant cash advance actually cost in Canada?
MCAs are priced using a factor rate, typically between 1.15 and 1.45, set mainly by the term. A $100,000 advance at a 1.25 factor means total repayment of $125,000. An advance is not a loan and the factor is not an annualized rate.
Start an applicationFactor rates are not APRs and should not be annualized. The factor sets total dollars repaid; the term and the holdback set how quickly those dollars leave the business. Compare offers on total cost of capital — total repaid minus amount received — not on a converted rate.
MCAs are appropriate when (a) speed matters, (b) the use of capital generates ROI greater than the cost, or (c) traditional credit is unavailable. They are not appropriate as long-term working capital.
Voxen Capital's role is to identify whether an MCA is the right instrument and, if so, secure the lowest factor available for the file — and to refinance into cheaper instruments (LOC, term loan) as the business strengthens.
How cost is quoted, by product
Figures are typical ranges for a complete file, not guarantees. Final terms depend on revenue, time in business, credit profile and lender review.
| Merchant Cash Advance (MCA) | Factor 1.15–1.45 |
|---|---|
| Business Line of Credit | ~8–20% APR |
| Invoice Factoring | 1.5–4% of invoice |
| Equipment Financing | ~7–18% APR |
| Bridge Loan | ~10–18% APR |
| Term Loan | ~8–22% APR |
| Inventory Financing | Quoted per file |
| Acquisition Financing | Stack-dependent |