This estimator from Graniteford Finance, a small-business funding broker in Casper, WY, calculates the total a funder collects on a merchant cash advance (amount advanced times factor rate), its dollar cost, and an estimated collection period. Subtracting remittances made so far gives an estimated remaining balance. A merchant cash advance is not a loan; the agreement and funder's payoff letter govern.
How to estimate what is left
- Find the purchased amount. Enter the amount advanced and the factor rate. The calculator shows the total to be remitted. If your agreement states the purchased amount directly, use that figure.
- Add up what has been remitted. Total every holdback or debit to the funder from your bank or processor statements since funding.
- Subtract. Total to be remitted minus remitted so far is the estimated remaining balance.
- Estimate the time. Enter the holdback and average daily card sales; the calculator estimates the business days to collect the full total and the amount collected per day. For the time left, divide the remaining balance by that daily amount. For a fixed debit, divide the remaining balance by the debit amount instead.
A merchant cash advance is not a loan, so there is no interest to recalculate as the balance falls. The remaining balance is simply what has not yet been remitted, unless the agreement says otherwise.
Which number goes in which box
| Box | Enter | Where to find it |
|---|---|---|
| Advance amount | The amount the funder agreed to advance, before fees | The agreement's funding or purchase price section |
| Factor rate | The multiplier in the agreement | Often near the purchased amount; or total to be remitted divided by amount advanced |
| Holdback | The percentage of receipts remitted, or 100 for a fixed debit | The agreement's remittance section |
| Average daily card sales | Your typical daily receipts, or the fixed debit amount | Processor or bank statements |
Early payoff
Paying an advance off early does not automatically reduce the total, because the cost was fixed when you signed. Some agreements offer a discount for early payoff; many do not. Ask the funder for a written payoff letter stating the exact amount and the date it is good through; that letter, not this estimate, is what counts.
What the estimate leaves out
- Fees charged at funding or during collection
- Missed, returned or adjusted remittances
- Reconciliation adjustments if your receipts changed
- Any early payoff discount or default charges in the agreement
These figures are arithmetic for illustration; the factor rate and every term come from the funder.
If more than one advance is open
Run the estimate once per advance and add the remaining balances and daily remittances together. If the combined remittance is a large share of daily deposits, read loan and MCA stacking explained before taking anything new, and see how merchant cash advances work for reconciliation.
By Graniteford Finance · Updated