Once you sign a merchant cash advance, the factor rate is locked. Unlike an interest rate, it does not move with markets or time, so the total you owe is set the moment you agree.
Why the factor rate is fixed
A factor rate is a one-time multiplier, not a compounding interest rate. When you borrow $20,000 at a 1.30 factor rate, you owe $26,000, and that figure does not change whether you repay quickly or slowly. There is no variable component to adjust later.
This is one of the clearer aspects of an MCA: the total cost is knowable up front and does not creep.
What can still vary
The rate is fixed, but a few things around it can move:
- The repayment timeline, if your sales rise or fall and payments are a percentage of revenue
- Your effective APR, which changes with how fast you repay even though the dollar total does not
- The rate on a future renewal or new advance, which is priced fresh
Watch for fees outside the rate
The factor rate covers the cost of the advance itself, but agreements can include separate items like origination or administrative fees. These do not change the factor rate, yet they affect your true cost, so read the contract for anything listed alongside it.
If a charge is not in the signed agreement, it should not appear later; keep your paperwork so you can hold the lender to it.
Get the full picture before signing
Because the total is fixed at signing, the time to compare is before you agree. Ask for the total payback, the term, and any fees, then weigh offers side by side. The Broker Shop lets 50+ lenders compete so you lock in the best terms from the start.
Checking your options is free and won't affect your credit score.
See what you qualify for
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See What I Qualify For →The bottom line: An MCA factor rate is locked at signing and the total never changes, just watch the term, any separate fees, and the rate on any future renewal.